Retirement Savings Selector Tool Helps Small Businesses Choose the Right Retirement Plan
Finding the right type of retirement plan for your business can be tricky. There are many different options to choose from, and each offers different benefits. But awareness of these options among small employers is often limited, researching and understanding all of the options can be time consuming and intimidating.
In fact, our 2018 Small Business Retirement Survey found that 55% of small businesses looked at a retirement plan, but still chose not to offer anything. This is likely due to misconceptions related to cost and complexity, which are often perceived negatives associated with the assumption that a 401(k) plan is the only option.
With as many as 55 million Americans working for an employer that does not offer a retirement plan, we developed the Retirement Savings Selector Tool for Small Businesses in conjunction with our Workplace Savings Solutions product.
We know how overwhelming the process of researching retirement plan options can be, so we developed a solution that is free, easy to use and, most importantly, informative and agnostic. Our goal is for all employers to be able to determine the retirement savings plan type that is right for their business and their employees.
Here is how the Retirement Savings Selector Tool for Small Businesses works.
First, small business owners answer a few straightforward questions that identify the size of their business and what they want from a retirement savings program. For example, users identify whether or not they have employees and which parties will be responsible for contributing – just the employer, just employees or a combination of both. Depending on the answers selected, the tool may request additional information, such as the total number of employees in the organization and the amount the business will contribute (if at all).
With this information, the tool agnostically generates the retirement savings plan type that might be the best fit: a SEP IRA, SIMPLE IRA, Payroll Deducted IRA or 401(k) plan. At this stage, users can learn more and compare the different retirement savings options following the prompts provided, as well as get in touch with Millennium Trust to discuss the results.
Some retirement plan options are structured to benefit companies who employ thousands of people. Some are designed for sole proprietorships. While saving for retirement through your workplace is a critical factor in saving for the future, different businesses have different needs.
Our Retirement Savings Selector Tool for Small Businesses offers the first step that many small businesses may need to get started. Our goal is for all businesses to offer employees a retirement savings option that works for both so that all employees have a way to save for their retirement.
The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.