A 401(k) plan is a popular way for employees to save for retirement and can be one of the deciding factors for individuals when considering new job offers. Despite the benefits, many small or medium-sized business owners don’t offer 401(k) plans for their employees. You may believe sponsoring a 401(k) plan is too expensive, complicated, risky, or an administrative burden. However, your company will be at a disadvantage in terms of hiring and retaining employees if you do not offer a 401(k) plan. You will also be missing out on important tax deductions.
The good news is there is an affordable 401(k) retirement plan that will benefit you, your business and your employees.
401(k) Multiple Employer Plan (MEP)
Instead of sponsoring your own 401(k) plan, you have the option to join a Multiple Employer Plan. In a MEP, multiple employers adopt a single plan which provides the economies of scale and purchasing power of a large company. For small or medium-sized companies who are not able to handle the administrative costs, complexity, liabilities of a 401(k), joining an MEP makes good business sense. It is a cost-effective way to provide a retirement plan for you and your employees and take advantage of important tax deductions.
By participating in the Ataraxis MEP, you can cost effectively offer your employees a first-class 401(k) savings plan with access to excellent investment options. You will also reduce your workload and business risk by joining an MEP. Employer contributions are tax-deductible and the assets in the plan grow tax-free. With the Ataraxis MEP, you have a team of 401k experts working to ensure you and your employees receive the best value for your savings and investments.
Furthermore, you have the flexibility to design a plan to meet your company’s 401(k) plan goals. You can choose how quickly your employees are eligible to participate in the plan. You can decide whether to match employee contributions and set the vesting schedule for when employees “own” the funds.
Employees can defer a portion of their paycheck, pre-tax, to the 401(k) plan. Contributions are easy to make through payroll deductions and can reduce the employee’s current taxable income. Interest accrues over time, which allows small, regular contributions to grow into significant retirement savings.
The more your employees understand about retirement planning, the more informed their choices be in 401(k) investments. When you or your employees have questions, you can contact our investment manager, Jed Reese at STRIVE Wealth.
Join Our 401(k) Retirement Plan
When you adopt the Ataraxis, Inc. Retirement Savings Plan, you’re not only getting a great plan, you are also getting a seasoned team of 401k experts working on your behalf to ensure plan compliance and maximize the benefits for you and your employees. We will evaluate your options and help you decide what makes the most sense for your business.