Information that Helps You Choose the Right Employee Benefit Plan

What kind of information should I give my investment advisor when discussing setting up a retirement plan for my small business? I think a 401K plan is the best option. Do I still need to talk to my advisor?– Marylou Saver, Atlantic Beach, Florida runs a party decorating service.

Choosing the employee benefit plan or retirement plan that you should set up for your business can be a tedious, time consuming and, above all, very confusing task. Even if you do hire an investment advisor to help you with this task, there is still some analyzing and comparing for you to do. The advisor may ask for some details about your business that will help determine the kind of plan that will suit your needs perfectly. Remember that even if you have decided on a 401K plan, your advisor may be able to help decide exactly which kind (Solo 401K,SafeHarbor401K, Roth 401K etc) will suit you. Here is some of the information you should have at hand before you sit down to discussing the kind of retirement benefit plan your business should offer employees.

The first point to consider is your contribution. How much can your business afford to contribute to the employee 401Ks? What kind can you afford- a regular monthly contribution or a non specified profit sharing contribution? Given that the total contribution outlay for the business will depend on the number of employees and their eligibility to the plan, these employee details will also be needed by the advisor.

Unless you are discussing the plan with the third party agency that will set up the 401K for you, it is also worthwhile discussing DIY software suites like These suites let you manage your 401K on your own with ease. This helps keeps the costs down while giving you and your employees a great deal of control over the plan assets.

About Elliot Earl, Director, Pension Trade Association
Director, Pension Trade Association Founded in 1982, the Pension Trade Association [California Domestic Nonprofit Corporation #C1629080] is dedicated to helping workers save for their retirement through expanded coverage of 401k -type defined contribution pension plans.

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