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The Importance of a Well-Designed 401(k) Plan

The Importance of a Well-Designed 401(k) Plan

September 21, 2022

According to a 2014 study by Guardian Retirement Solutions, employees rank 401(k) plans among the most appreciated work-related benefits. A well-designed 401(k) plan can help your company attract employees and remain competitive in the industry.

But operating a 401(k) plan takes a lot of work. There are many elements to manage: 

  • Plan participation 
  • Contributions
  • Vesting
  • Nondiscrimination rules
  • Investing of the 401(k) fund
  • Disclosure of plan information to participants
  • Reporting to government agencies and distribution of plan benefits 

As a growing business, your time is better spent focused on strategies to increase sales or service to your clients, not managing employee benefits. This is where a financial professional can help.

Did you know that reviewing your plan provider is a part of your fiduciary responsibility? Someone who specializes in helping small to mid-sized businesses like yours manage their retirement plans can evaluate your plan and see if there are better options, such as enhanced benefits or lower fees. The goal is to provide you the best options based on your and your employees’ needs.


About the Author:

Damon Paull is a Marine Corps veteran who has traveled to over 20 countries. As a financial advisor in Houston, Texas, he is passionate about helping business owners and individuals achieve their financial goals. You can connect with Damon and his team at: 703.362.5747 or DPaull@totuswm.com.


For use with plan sponsors only.