What to look for
Here are three easy things to look for in a 401(k) plan:
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Fees
Settle for a plan with hidden fees and the result could be the difference between a retirement of taking the bus or cruising in a classic convertible.
Most providers charge an asset-based fee, based on the amount of money you have in your plan. Since it's a percentage, the more money you have — the bigger the fee.
Very few (and we are proud to be one of them) charge a flat fee. You'll always know what you are paying and it's disclosed upfront. It's based on the number of employees you have and the services you want. That's it.
Don't get taken for a ride — ask all the providers you are looking at upfront about asset-based fees and if there are any.
Service
Before you sign on with a 401(k) provider, make sure that what they are offering meets you and your employees' needs.
Are your employees Web-savvy and like accessing everything online? A provider with a mix of online support and live support might be just the ticket. On the other hand, if your employees don't have computers or need more handholding, you may have to sacrifice some technological efficiencies or pricing.
Whatever your needs are, make sure the service model of the 401(k) provider you pick meets you and your employees' needs.
Investments
Especially in this economic and environment, you and your employees are entitled to a wide range of investments for your retirement savings. Make sure that your 401(k) plan allows you to access multiple types of mutual funds from different fund families.
Too often, small businesses are given a limited range of investments. Make sure that doesn't happen to you and your employees.
