There’s More to Retirement than a 401(k): Introducing Workplace Savings Solutions for Small Businesses | Millennium Trust Company

There’s More to Retirement than a 401(k): Introducing Workplace Savings Solutions for Small Businesses

November 1, 2019
By Millennium Trust

Every business is different. We all have different expectations and preferences for how we operate, how we work with employees and partners and how fast we will grow. The same should be true for the way we approach retirement savings. There is not a one-size-fits-all solution. And while it sometimes is perceived that 401(k) plans are the only option, the good news is there are alternative options.

That’s why we are proud to introduce Workplace Savings Solutions. Workplace Savings Solutions is a new product that offers a suite of retirement savings options for small businesses when a 401(k) plan may not be the best fit. While 401(k)s offer a number of benefits, there are other plans – such as SEP, SIMPLE, and Payroll Deducted IRAs – that offer different levels of flexibility and may better align with different preferences and needs.

The need for innovative savings solutions became apparent as we noticed several consistent realities within small business retirement planning. Notably:

  • 47% of small employers do not offer any kind of retirement savings benefit program.

  • With the vast majority of Americans working for small businesses, this translates to roughly 55 million Americans who do not have access to a retirement savings plan at work.

  • To better understand how this contributes to a growing retirement crisis, 1 in 4 Americans have nothing saved for retirement.

The ability to save for retirement through your workplace is crucial, especially when Americans are 15 times more likely to save for retirement when they have access to a workplace savings option. However, 66% of those surveyed in the 2018 Millennium Trust Small Business Retirement Survey say that cost is the biggest barrier to offering a retirement benefit.

Our Workplace Savings Solutions will help address these challenges by making it easier and more cost-effective for small businesses to offer tax-advantaged retirement savings to their employees. Additionally, we are proud to work with Morningstar Investment Management, who has compiled a selection of 28 different mutual funds that participants can self-select from to construct a diversified portfolio.

Workplace Savings Solutions are simple, affordable, digital and targeted. Here is a breakdown of the products we offer:

  • SEP IRA – Designed for sole proprietors or small family businesses looking for a retirement plan with tax-deductible contributions, tax-deferred growth and hassle-free account maintenance.

  • SIMPLE IRA – Can be established by any small business, generally with 100 or fewer employees. Similar to a 401(k), but with less expense and complication.

  • Payroll Deducted IRA – For any size business that wants to offer its employees the opportunity to have deductions taken from their paychecks to contribute to traditional or Roth IRAs that the employees set up for themselves.

At Millennium Trust, our mission is to help more Americans save for retirement. Sometimes that means improving access to and participation in 401(k) plans, and sometimes it means exploring different options that are better suited for the needs of the business and their employees.

Learn more about Workplace Savings Solutions.


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.

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