Small businesses often want to offer their employees retirement plan benefits, however many are not able to do so. An article by Martha Hamilton in the Washington Post recently highlighted the challenges facing small business retirement plans and what can be done to combat them.
The article noted that many business owners can’t afford to administer or contribute to a retirement plan. Small business employee participation is often lower than larger companies. Employers also can’t afford to hire specialists such as accountants, tax advisors or human resources specialists to assist in dealing with the complex rules often associated with retirement benefits. Retirement plan administration can also be time-consuming to businesses who find that all their time goes to running their business. “That retirement planning takes a back seat is not surprising,” noted Hamilton in the article.
The article made some suggestions as to how small businesses can overcome these obstacles, such as having financial institutions administer the plans and automatically enrolling workers. NADART offers plans designed specifically for small businesses in mind, and does so with some of the lowest fees in the industry. We offer features like automatic enrollment and Roth 401(k) contributions, as well as education materials to help increase employee participation. If you would like to learn more about how NADART can help your small business with the right retirement plan, please contact (800) 462-3278, ext. 7161 or e-mail nadart401k@nada.org.