What You Need to Know About Safe Harbor 401K Plans


Finding a retirement benefit for a small business can be difficult, especially since it can be very hard for small businesses to match larger companies in the benefits that it offers to employees. In fact, it is fairly common for small companies and startups to lose many of their best employees because they are unable to offer their employees a competitive benefits package. As a small business owner, being able to offer your staff a competitive retirement plan would certainly help you retain talented individuals on your staff. If you are interested in finding out more about offering your staff a viable 401k plan, you need to take a closer look at safe harbor 401K providers.

3 38 fiduciary services are the perfect retirement plans to help small business employees save for retirement. A safe harbor 401k is ideal for an older worker who has not been able to save as much throughout their lives as they would have liked. As retirement grows closer and closer, it is especially beneficial to have a safe harbor 401k plan in place for a number of reasons. This is because safe harbor plans allow people to invest as much as they wish in their 401k plan.

While an employee is allowed to invest as much as they want in their safe harbor 401k plan, the employer is required to match the funds at a rate of 100% on the first 3% and 50% of the next 2%. Another safe harbor option will allow employers to match 100% of the first 5% of income that the employee has set aside. This rate of matching funds will ensure that your employers are able to save for retirement, and you will be much more likely to retain that employee as a result. In this way, all of the contributions that you make on your employee's behalf will work like an investment in the future of your company. Read https://www.reference.com/business-finance to gain more details about small business.

The best way to find a safe harbor plan provider in your area is to find a company that offers retirement, investment and fiduciary services to small businesses, like safe harbor retirement plans and erisa 3 38 fiduciary services. If you are interested in learning more about safe harbor 401k plans, the best thing you can do is visit the website of a financial services company that offers 401k retirement plans that are designed for small businesses. To get started, all you have to do is perform a search engine search for 401k options for small business or safe harbor 401k plans available in your area.