Considering opening a 401(k) plan for your business, but concerned about the process or qualifications? Fear not. We’re debunking some of the top myths surrounding small business 401(k) plans and why you shouldn’t let these myths stand in the way of you or your employees’ retirement planning goals.
I Can’t Afford A 401(k)
This is one of the biggest myths that surround small business 401(k) plans, and it’s understandable why. Many small businesses may feel that they don’t have the funds to open a plan for their employees because of fees, but the reality is you don’t have to pay a dime for the administration of a plan. We don’t charge a penny to set up a 401(k), nor do we unnecessarily charge fees.
I Don’t Have Enough Employees To Establish A 401(k)
There’s no minimum number of employees you need to establish a 401(k). You can open one whether you have 5 or 25 employees, or even if you’re self-employed and it’s just for yourself. The best part is if your business does grow, later on, your 401(k) can grow with it.
It Takes Too Much Time To Manage A 401(k)
The thought of having to manage a 401(k) plan while handling other responsibilities when it comes to your small business can be daunting and tedious. The simple truth is that you don’t have to lift a finger when it comes to managing your plan. As a small business 401(k) provider, we do all the heavy lifting for you so you can relax and focus on running your business.
My Employees Won’t Enroll In A 401(k)
While it may feel old school, 401(k) plans are highly sought after by employees, with 87% considering it a must-have benefit. Times may have changed, but individuals still want to retire comfortably, which means they’re looking to save for retirement anyway they can. It’s very likely that your employees will accept a plan if offered, not to mention that our auto-enrollment feature makes it easy to get them onboarded.
Don’t let any of these myths scare you away from opening a 401(k)! You and your employees deserve to have one, which is why we’re committed to giving you the most affordable and seamless 401(k) experience possible. Contact us to learn more about why we’re the right fit for your business.
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