Small-business owners wear many hats, needing to work simultaneously on business development and internal operations. Getting the right people into the right roles, and effectively delegating responsibility, is essential for continued success.
And offering a 401(k) plan is a powerful way to attract and retain top talent. As detailed in a new analysis from the Colcom Group, an accounting and consulting firm, making such plans available shows staff that ownership is invested in their long-term financial security.
Sponsoring a 401(k) plan isn't a set-it-and-forget-it task, however, and business owners who do so have a fiduciary duty to act in the best interests of their plan's participants. Failures can result in private litigation filed under the Employee Retirement Income Security Act or government scrutiny in the forms of audits and fines.
Naturally, letting a 401(k) plan run on autopilot can lead to significant problems, even when business owners use a third-party administrator and other service providers that take on some of the burden to manage the plan.
Fortunately for small-business owners, effectively managing a 401(k) plan doesn't require a mountain of effort — especially when fiduciaries take a proactive oversight approach.
See the accompanying slideshow for six recommended steps to keep 401(k) plans in good working order.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.