A 401(k) plan is a type of defined contribution retirement plan that allows workers to contribute a portion of their income to save for retirement. 401(k) plans are a popular choice to help employees prepare for retirement, but a well-structured plan can also help attract and retain the talent needed to grow a business and offer tax advantages to employers. Starting a 401(k) plan can feel daunting to business owners, but it doesn’t have to feel that way.
STARTING A 401(K) PLAN
As outlined in the IRS guide, 401(k) Plans for Small Businesses, four basic actions are necessary to establish a tax-advantaged 401(k) plan:
- Adopt a written plan,
- Arrange a trust fund for the plan’s assets,
- Develop a recordkeeping system, and
- Provide plan information to participants.
Enlisting the right professionals can help you through the process to be certain all legal requirements are met. The experienced team at Watkins Ross can help you establish your 401(k) plan and ensure the plan continues to meet the annual compliance requirements.
The Watkins Ross team specializes in customized retirement plan designs, administration and consulting for 401(k) plans. We are happy to talk with you about the various plan choices and what may best suit your situation. Please contact David Bosch (dbosch@watkinsross.com) or Sheila Freund (sfreund@watkinsross.com) to begin the conversation.
