5 Things For Business Owners and Managers to Consider for Your Company’s 401(k) Plan This Year

Managing a business well is demanding, and creating or making adjustments to your company’s 401(k) plan can make ownership even more challenging. That’s why we have gathered the five key components you need as a 401(k) plan sponsor to get ahead in the new year. 

We’ll show you how to balance compliance, employee expectations, and fiduciary responsibilities. Here’s a hint—it’s all about where you can offset some of the responsibilities. If you’re wanting to improve your 401(k) offering, or provide yourself some relief from managing it, keep reading.

1. Notify Employees About New 401(k) Contribution Limits 2025

The IRS has announced new 401(k) contribution limits for 2025, allowing employees an opportunity to increase their retirement savings. 

Acting in the best interests of your employees is important and includes ensuring they are informed and empowered to make the most of their retirement plans. Clear communication about these updates—whether through emails, meetings, or internal platforms—ensures everyone can take full advantage of the changes.

Hosting a discussion is a free way to improve your employee benefits. Individuals who grasp their retirement plan’s features and benefits exhibit higher participation rates and contribute more consistently.

And, while the modest $500 yearly increase may seem insignificant at first glance, its long-term potential should take center stage. That extra investment could compound over time into a substantial amount. Help your employees understand compounding and the growth potential of their contributions, highlighting what happens when you give that money more time to grow.

Facilitating meaningful conversations to educate your participants reinforces your commitment to their financial well-being. These discussions demonstrate that a loyal employer fosters a loyal workforce. Enhancing employees’ understanding and appreciation of their benefits intends to positively influence their perception of your organization, potentially leading to improved engagement and performance.

2. Beneficiaries Conversation

In addition to contribution limits, remind employees to review and update their 401(k) beneficiaries. Life events like marriage, divorce, or the birth of a child can make updating beneficiaries critical so savings reach the intended recipients. 

This step is simple and essential for helping employees align their retirement plans with their long-term goals and family needs. Encourage regular updates as part of your benefits communication strategy.

3. Add a 3(38) Fiduciary to Improve Overall 401(k) Offering

As a small business ourselves, we understand the demands of running a business well. That’s why we know your time is finite and valuable. Why take on the stress of learning investment selection fiduciary duties for a 401(k) plan rather than outsource to a seasoned investment manager? 

As your business grows, so do the complexities of managing a retirement plan. Adding a 3(38) fiduciary can make your retirement plan management simpler by providing professional oversight of plan investments. When managing your 401(k) investment fiduciary responsibilities becomes too overwhelming, offload that portion of your role in your 401(k) plan to Shelton 401(k) Services. 

While it is still your fiduciary responsibility as a plan sponsor to select a competent and expert 3(38), our solutions are backed by 40 years of investment expertise and authentic customer service, leaving you in trusted hands. We conduct investment selection and monitoring, offer quarterly documentation to the plan sponsor, and provide live and online education for plan participants. And because we are a boutique firm, you can always inquire about the background of our team, resources, and reports. 

This delegation to our team will give you time back in your day instead of adding in another task that could negatively impact productivity. Outsourcing may have a higher upfront cost, but it saves time and money down the road when you no longer have to research and select investments for your employees’ retirement plan.

4. Switching Your 401k Fiduciary Services to Shelton

If you already have a fiduciary in place but find the service lacking responsiveness, customization, or compliance support, it may be time to switch. A fiduciary is responsible for selecting and monitoring investments, reducing your liability while enhancing the plan’s overall performance. 

Shelton’s 401k Fiduciary Services improves your overall offering by providing a customizable and reasonably priced fiduciary who acts as an investment manager for your plans, ensuring you get the support you deserve.

Using Shelton 401k Fiduciary Services as your plan’s new investment fiduciary can provide:

  • Customized investment management aligned with your company’s needs.
  • Proactive compliance oversight to avoid costly errors.
  • A human approach ensures your concerns are addressed promptly.

Consider if you are getting the fiduciary support you need by downloading our Examining Your Company’s 401(k) Plan white paper.  

Simplify Your 401(k) Plan Management With Trusted Hands

At Shelton Capital Management, we specialize in personalized, hands-on services. Our high-touch service will give you the peace of mind you need to handle the rest of the business.

We are real people who will manage the plan and happily answer any questions you have. Call us old-fashioned, but we believe in human conversations—our U.S.-based team seeks to answers calls within two rings.

See the proof for yourself. Call (800) 225-8778 or visit Shelton401k.com.

Important Information

Investors should consider a strategy’s investment objectives, risks, charges and expenses carefully before investing.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.