There are so many different aspects of your business that you need to manage at a given time. But of all the things that will benefit yourself and your employees, having a great 401(k) is one of the most important. Think about these different criteria to consider as you shop for the best plan for you and your company.
Good Fund Choices
According to Benzinga, one of the most important aspects of a 401(k) for a business is having a great variety of investment and fund choices that employees can tailor to their preferences. This is especially important for smaller companies.
Look for plans that give employees the choice of investing in large and small stocks, various bonds, and various markets. Your ideal business 401(k) will also enable your employees to adjust their investment preferences based on their age as they get closer to retirement.
Another important aspect of a great business 401(k) plan is having flexibility when it comes to borrowing. As you analyze the different loan provisions for different plans, figure out which ones would best address your and your employees’ needs. Make sure that it is possible to borrow from a 401(k) for emergency medical situations. Additionally, ensure there are other options for borrowing that extend beyond emergencies. According to Franchise Gator, you can borrow for several reasons, including to fund your business.
As you are shopping for a 401(k) provider, according to The Street, you must take the company’s reputation or lack thereof seriously. When it comes to your business 401(k) plan, choosing someone who will do a good job will not only dramatically affect you and your business but will also dramatically affect your employees.
As you shop around to identify and understand the reputations and backgrounds of different 401(k) providers, don’t only consider their reviews on their surface. While these are helpful, you should specifically search to understand the experience of businesses that are comparable to your size and scale and who also had some of your similar needs.
A 401(k) has serious implications for your retirement. But it also has serious implications for wealth development in general. Choosing a good company plan will give you added insurance and added funds if you need money for your business in the future. So take your time and choose wisely.
Read this next: How to Use Design to Promote Your Business Offline