Best 401k Plans For Small Business

When you sign up with Guideline to sponsor a 401(k) plan, you don't pay advisory fees, custodian fees or assets-under-management fees.

As you're calculating what it would cost to sponsor an employee retirement plan for your business, consult your accountant or tax advisor to find out which tax credits and deductions you're eligible for and how they would affect your tax strategy.

This type of plan used to be rare for small employers to offer due to the costs and complexity of complying with federal regulations.

As your plan assets grow, the company also lowers your monthly administration fees.

Share Builder 401k doesn't specify any term length in its contract, so you can cancel your plan at any time.

Some of these companies use "robo advisors" that use algorithms to manage assets, allowing them to forgo fund management or advisory fees, so you only pay the fund expense ratio.

Most of these companies offer low-fee index funds and mutual funds to keep expense ratios down.

Fidelity Investments offers the best Savings Incentive Match Plan for Employees – or SIMPLE IRA – for small businesses because of its lack of fees for plan sponsors and its low costs and complimentary investment guidance for plan participants. They also pay fund expense ratios, though commission-free exchange-traded funds (ETFs) from Fidelity and i Shares are available, helping to keep these costs low.

This type of plan is for businesses with 100 or fewer employees and requires plan sponsors to either match a small percentage of each participating employee's contributions or contribute a smaller percentage to all employee accounts. Guideline offers the best 401(k) employee retirement plan for small businesses because it's a full-stack solution with low fees.

Instead of you working with multiple financial professionals and companies to help you comply with the Department of Labor's ERISA regulations, Share Builder serves as the 3(38) fiduciary and takes care of everything: plan administration, custodianship, recordkeeping and investment management.

Plan costs include a setup fee and monthly administration costs.


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