Frequently Asked Questions
Because you deserve to have all of the answers.
A deep dive into employer 401K Solutions.
We guide you through the process of setting up a 401(k) from start to finish.
What is CalSavers?
CalSavers is the California mandated plan for employers with fifty or more employees to provide a 401(k) program.
Are employers required to offer retirement plans?
Employers are not technically required to offer 401(k) programs for their employees, but some states require employers to offer a basic retirement plan. California’s basic plan is CalSavers.
How expensive is a 401(k) plan?
It’s not possible to give an exact price when talking about the expense of a 401(k) retirement plan. It highly depends on which plan is chosen and what additional options are selected. The average range of costs can go from $750 –$3,000 per year plus fees.
Can I offer my employees a 401(k) plan for free?
Unfortunately, a 401(k) plan cannot be offered for free on the employer’s end. The most common contribution from the employer is 50 cents on the dollar up to 6% of the employees pay. That isn’t to say there aren’t lower cost options, in these cases it’s important to have an advisor to guide you to the correct options and plans.
What is fiduciary responsibility?
Essentially a Fiduciary is the go-to person for your plan and handles all of the administrative processes related to your plan. Their responsibility is to ensure that every step of the retirement plan, from initiation to completion, is executed in the best interest of the participants AND beneficiaries.
What is the difference between defined benefit vs defined contribution?
The essential difference between a defined benefit plan and a defined contribution plan is who bears the risk of investing. Defined benefits allows employees and employers to invest funds for retirement with certain caps and regulations, while defined contribution “defines” a specific amount that will be invested.
Why should I offer employer-sponsored plans?
The simplest reason is for tax exemptions and write-offs. There are a number of tax relief programs for small to midsize companies who offer retirement plans.
What’s the difference between 401(k) vs SEP IRA vs Simple IRA?
401(k): Employees can put money away for retirement from their paycheck and defer any taxes for a later date and lower overall rate.
SEP IRA: SEP IRA, or S Simplified Employee Pension, is a way for business owners to put money away towards their own retirement while putting contributions towards an employee’s retirement at the same time.
Simple IRA: Simple IRA is very similar to SEP IRA, the biggest difference is that employees can contribute to the plan as well, matching contributions to make retirement goals easier to achieve.
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