Managing a 401(k) plan for your business can be overwhelming. It's essential to ensure that your plan is both cost-effective and meets the diverse needs of all your employees. A well-managed 401(k) plan significantly impacts employee satisfaction and financial security.

Are Fees Eating Away Employee Savings?

One critical sign that it's time to change your 401(k) provider is excessive fees. Did you know that even a 1% difference in fees can reduce employee savings by over 20% over time? Switching to a provider with lower fees or more passive index options can make a substantial difference in your employees' retirement savings.

Are Administrative Tasks Overwhelming?

The administration of a 401(k) plan can be time-consuming and complex. Features like fiduciary support, seamless payroll integration, and robust data security are essential to alleviate these burdens. The right provider can streamline these processes, allowing you to focus on other critical aspects of your business.

Is There a Lack of Investment Flexibility?

Flexibility in investment options is crucial, especially for younger workers who may have different financial goals compared to their older colleagues. Assess whether your current plan offers sufficient investment choices. A plan that provides multiple investment options can cater to a broader range of employee needs.

Is Investment Performance Below Average?

Consistent underperformance compared to the market average or competitors should be a red flag. Typical returns for a moderately aggressive allocation range between 3% and 8%. If your current provider's performance consistently falls short, it may be time to consider a change to ensure better financial outcomes for your employees.

A suitable 401(k) provider is crucial for maximizing employee engagement and retirement outcomes. Being proactive in evaluating and possibly changing providers can lead to better financial security for your employees. Reach out to our 401(k) experts for assistance in finding the ideal plan for your company.