ShareBuilder 401k Offers Guidance for Employers

Topics include: choosing the best 401(k) plan for your business; the advantages of an all-exchange-traded fund (ETF) 401(k); how to lower 401(k) costs to help build a bigger nest egg; the unique business benefits of offering a 401(k); and best practices for setting up and managing your 401(k) plan. To check out “The Straight Scoop on 401(k)s” visit www.youtube.com/sharebuilder401k. 

In addition, ShareBuilder 401k offers the following end-of-year tips: 

• Do not miss the deadlines. For small business owners considering a 401(k) plan, December 31st is the Internal Revenue Service (IRS) deadline to start a new 401(k) plan that will allow for 2012 contributions and tax exemptions through the April 15th tax deadline. (Important note: Solo 401(k) plans can typically be purchased through the last day of the calendar year; however, employee-based plans generally need to be purchased at least a week prior for 401(k) providers to establish the company’s plan by the December 31st deadline.) 
• Conduct an end-of-year plan review. Businesses that already offer a 401(k) plan should take the opportunity to review their current plan’s fees and ensure they are not above 1%. New federal laws require providers to disclose fees more transparently. By taking a close look at the new disclosures, business owners may find that their costs are higher than they originally thought.  
• Consider your options. If a business is currently paying more than 1% in fees—or if you are unsure whether or not your current plan is the best plan for your business—now is the time to check out your options and consider making a switch. ShareBuilder 401k offers free cost comparison tools that can help businesses compare their plans to those offered by other providers.