There is a lot of conversation lately reminding employees and participants of the fundamental reasons to contribute to their own retirement through their 401(k) plan, as well as why they should stay invested even during tough economic times.
Times are tough for employers, too. With that in mind, here is our reminder for you about the importance of providing a 401(k) plan. Although the ride has been bumpy, these basics have not changed.
- Competition for talent. Employees expect to have a 401(k) plan. When the economy is in overdrive, that’s especially true; but even when it isn’t, the 401(k) plan has become a foundational employee benefit. If you don’t offer one, you may miss out on the talent you need to push ahead.
- Keeping the company fresh. Because they help employees accumulate retirement savings, 401(k) plans may allow employees to retire on time. In turn, younger employees have opportunities to move up the ranks, bringing fresh eyes and ideas to your business.
- It’s pretty easy. When you seek the assistance of the right retirement professional, implementing and operating the plan doesn’t need to disrupt your business. Yes, there are lots of rules to follow. But more than three decades have elapsed since these plans were developed, and the industry has a good grasp on how to operate them simply and effectively.
Stay Healthy & Stay the Course,
Your Advisors & the Team at OSC
© 2020 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance, nor as the sole authority on any regulation, law, or ruling as it applies to a specific plan or situation. Plan sponsors should always consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.