State Mandated Retirement Programs: What You Need to Know
In the last decade, state mandated retirement programs have become a way to increase the low percentage of Americans saving for retirement, and a way to bridge the coverage gap as pensions become rarer.
More and more states are enacting retirement savings mandates and programs, with others considering legislation. A few are voluntary, but many are required if companies have anywhere from one to five employees or more. Each state has its own requirements, and its own program that employers and small business owners can sign up for. And while FuturePlan applauds the efforts made by each state to create a nation of savers who are retirement-ready, there are other considerations for a small business owner like a 401(k) or other plans.
401(k) Plan Advantages
401(k) plans offer the following advantages when offering a retirement plan to employees:
- Tax savings for your company overall
- Fees for setup can be tax deductible
- Employees can save more than in a state-mandated program
- High degree of customization and creative plan design to fit your specific needs as a company
- Attract and retain valued and skilled employees
- Cost efficient
- Owner only solo(k)s also available
- Credits for auto-enrollment
Setup and Administration
Design setup and administration of 401(k) plans are different than state mandated programs. Consulting with an experienced TPA like FuturePlan can make the process seamless, easy, and make sure it fits with your goals as a company. We take a holistic view, consider your company goals, and use our many decades of technical expertise to create plans for small employers that enjoy every tax advantage we can. We also offer services that will help simplify ongoing administration of your plan and work with advisors to make sure these plans fit into your overall investment and business strategy.
Get Started Today
Connect with a member of our national sales team to learn more about how to incorporate 401(k) plans into your practice.