How it works
Start with the facts.
Review your current plan, compare costs and services, and decide whether a change is worth exploring.
The process
Three steps.
Fee review
A review starts with the current plan documents and fee disclosures. Define which administrative and investment costs will be compared, the services included and any assumptions.
Plan design
Discuss the workforce, employer contribution goals and budget with the appropriate advisors and plan specialists. The proposal should identify who performs design, documents, payroll coordination and setup.
Launch & ongoing
Confirm enrollment support, employee contacts and the schedule for reviews. Testing, filings and notices belong to the providers identified in the service agreements; employer responsibilities remain important.
Plan types
A structure that fits.
Discuss your workforce, payroll, and contribution goals with the appropriate plan specialists.
Traditional 401(k)
The default. Employees defer from each paycheck, you choose whether and how to match. Flexible, familiar, and subject to annual nondiscrimination testing.
Safe Harbor 401(k)
A plan design with specific employer-contribution and other requirements that can provide relief from certain nondiscrimination tests. A specialist should explain the requirements that still apply.
Profit sharing
A discretionary employer contribution layered on top, decided year by year. Useful when profits vary and you want to reward a good year without committing to it permanently.
Cash balance
A defined-benefit plan paired with the 401(k), for owners who want to defer well beyond the 401(k) limit. Best suited to consistently profitable businesses with a stable census.
Switching providers
A transition needs a shared plan
A provider change involves documents, data, assets, payroll and employee communication. Map the steps with the relevant providers and agree on who owns each part.
Confirm the expected dates, any blackout period and what employees should expect. Timing and available features depend on the actual plan, providers and completed setup.
Start with the fee review.
Discuss the current plan, your priorities and the scope of a written comparison before deciding whether to make a change.