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What To Expect When Starting A 401(k) Plan

Taking the next step in your business and establishing a 401(k) may have you wondering, “What’s involved with setting up a 401(k)?” You are not the only one; many employers don’t know what the process looks like either. Here’s a rundown of the process, which is actually quite simple!  

Getting Started

Starting a 401(k) plan doesn’t require a large dedication of time, and you can set up a plan pretty quickly. Once you inquire about wanting to start a 401(k) plan with a provider, one of our advisors will reach out to you and begin the conversation around setting up your plan. Things you will discuss include learning about the different plan options, and discuss which ones are the best fit for your employees.

Choosing A Plan

When it comes to choosing a plan, you may choose between a traditional 401(k), Roth 401(k), Safe Harbor 401(k), a Simple 401(k), and a Solo 401(k). Your advisor will go over all of these options with you and answer any questions you have about them. Together you will decide which plan or plans are best for you and your employees. Once this plan has been decided, you then will sign an adoption agreement that states the plan you have chosen and what it does. Once signed, the plan will become active. 

Payroll Integration

Once you’ve selected which plan or plans you’d like to offer your employees, then it’s time to integrate your payroll with your 401(k) provider. All of this data is automatically transferred so as the employer you don’t have to do anything. This information is a vital part of the process since 401(k) contributions are deducted directly from the employee’s paycheck.  


The final part of having a 401(k) plan is the management of it. This includes ensuring you’re remaining compliant with regulations, and filing any necessary forms/paperwork with the government, just to name a couple. While you can choose to do this yourself, one of the pros to using a 401(k) provider is that we handle this for you, so you don’t do any of the heavy lifting. Do beware, however, as many 401(k) providers will charge you unnecessary fees to do all of this.

Providing your employees with a 401(k) is so easy and can be very affordable, so why keep delaying opening one? Speak to one of our advisors to see how we manage all your 401(k) needs and do all the heavy lifting for you – all at a zero dollar cost!

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