

Photos by mujitra and dulhana
Thinking of putting a 401(k) in place but don’t know where to start?
Here’s five easy questions (and the answers you should hear) you can ask any provider to find out what 401(k) is right for you:
1. How much does your 401(k) product cost? Please include fees that come out of participant account as well as the upfront fee I need to pay.
Beware of hidden fees! Many providers don’t disclose annual fees that are calculated on the amount of money you have in a plan.
2. Do you sell your own investments? If so, what do I need to do to get access to other mutual funds?
It’s your responsibility to provide a range of investments to your employees. Make sure the provider you choose offers different fund types as well as different brands of funds so your employees are properly diversified.
3. Does your service give me everything I need for a 401(k) plan?
Look for a “bundled” solution. A 401(k) plan generally consists of two parts: making sure your plan is in compliance with the Department of Labor’s guidelines (includes tax filing, compliance testing, etc.) and also the recordkeeping of your employees’ contributions, taking the correct amount out of paychecks, etc. The provider you select should be a one-stop shop that includes both of these features in its service.
4. How long does it take to set up a plan and what are the steps to do that?
Setting up a 401(k) plan, should take no more than an hour, and maybe a half-hour a month to keep it going. Look for an efficient provider that can provide you with electronic versions of everything. You will save yourself time, as well as some trees!
5. What type of education will you provide my employees with?
Putting a 401(k) plan in place isn’t enough. You will need to let your employees know it is there and educate them on the benefits. Your 401(k) provider should provide this education and support you in this endeavor.
This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses. For more information or a free consultation on your 401(k) plan, contact John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 xt 828.