Offering a 401K Plan.
Know Your Costs & Responsibilities!
If you offer a 401k plan to your employees, it is important you as the owner or manager of your company understand all aspects and responsibilities of that plan. We are always looking for ways to enhance our offerings to our customers with cost saving solutions to everyday business and administrative tasks. In line with that objective, Time & Pay has formed a professional partnership with Ameriprise Financial -Klem & Gentry or Craig Torbett as well Qualified Plan Administrators to handle the requirements of 401K compliance and administration.
Offering a 401k plan to your employees is a great benefit to provide. But that offering may be more fraught with associated costs and risks than you think.
- First, you could very likely be paying more in fees that you realize.
- Second, you may not understand all your legal responsibilities and liabilities.
Lawsuits against 401k plan sponsors and trustees (i.e. you and/or your company management) have skyrocketed over the last few years with the past year’s market volitility. It is the trustees of the plan (i.e. you-management) that are required to understand all costs associated with the 401k plan and its performance on behalf of the participants (i.e. employees)!
Ameriprise is a full-disclosure 401k advisory firm. Excessive fees and revenue sharing can erode the returns within your 401k plan by thousands of dollars per year eroding your account returns well into six figures in the long-term! Again, as plan fiduciaries, owners and managers/trustees need to be aware that they are ultimately liable for plan assets (and fee disclosures).
There is no obligation involved in meeting with either one of our professional partners. At the end of the day, this valuable exercise will at minimum help you to better understand your duties as a trustee, help with uncovering total plan fees, and help determine how your plan “benchmarks” with respect to national averages within the 401k industry.
Keep in mind that if you choose to work with either one of our partners, or any other 401k provider or administrator, Time & Pay will integrate with their systems to provide seamless employee/employer contribution management and reporting capabilities as part of our payroll services. And unlike other payroll services, there are no long-term commitments.