Are you on the fence about starting a 401(k) plan for your small business? In a recent survey1, employees chose a retirement plan as the second-most popular benefit (88%) after health insurance (92%). Yet 80% of small businesses lack a retirement plan. What’s holding them back? Many people have misconceptions about 401(k) plans. Let’s take a look at some of these myths:
Myth |
Truth |
|---|---|
MYTH #1401(k) plans are too expensive for small businesses. |
Many 401(k) plans were built for larger companies, and come with big price tags, it’s true. But with technological advances, more providers are offering efficient, online |
MYTH #2401(k) plans require an employer match. |
Many people believe that all retirement plans require an employer match. With 401(k) plans, employers are not required to provide an employer match. |
MYTH #3Our employees won’t participate because they don’t make enough money. |
The 401(k) plan you select should offer resources to help educate your employees on the importance of saving for retirement. With a 401(k), there’s no minimum – your employees can contribute as little as they choose. An employer match can also be added to the plan to encourage greater employee participation. |
MYTH #4It’s too complicated – I need an HR department to manage a 401(k). |
Starting a 401(k) plan doesn’t have to be complicated. With the Intuit 401(k), you can get a new plan running in just a few hours of your time. And it’s easy to manage, with tools and reports at your fingertips. We take care of the IRS form filing and non-discrimination testing. |
1 Watson Wyatt survey, CFO.com, February 15, 2006
2 Plans start at $75/month for up to 10 employees. There is a one-time $495 set-up fee: other company fees may apply. Offer Details
The initial term (term minimum) of this agreement is 18 months. After the initial 18-month term is met, services will automatically continue on a monthly basis until the client requests the termination of these services.
The client will experience a recurring monthly charge, billed automatically to client’s credit card or other preferred method of payment. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice.
After the initial 18-month commitment, the client can discontinue services by contacting The Online 401(k) by calling 855.705.4357 or by e-mailing support@theonline401k.com.
The client must provide notice of cancellation to The Online 401(k) sixty days prior to termination. The Online 401(k) will charge a $600 fee for the process of either terminating the client’s plan or assistance in transferring the client’s plan assets to another provider. This covers the cost of reporting, additional communication and processing. This fee is a standard fee within the 401(k) industry. For The Online 401(k)’s full termination policy, please click here.
