Selecting the type of plan that's the best fit for you and your business is the first step. You have a variety of options to choose from, but some of the most popular types of employee retirement plans are traditional and Safe Harbor 401(k)s, Simplified Employee Pension Plan (SEP) IRAs and Savings Incentive Match Plan for Employees (SIMPLE) IRAs. If you're a sole proprietor, options include a solo 401(k) or a traditional or Roth IRA. For detailed information on these retirement plan types, check out our guide to small business retirement plan types.
After you've identified the type of plan you're interested in learning more about, it's time to look at plan providers. Many different companies offer employee retirement plans, but not every provider works with small businesses or has plans that are affordable for this market. Some only work with large businesses or those that have millions of dollars in assets. Others are expensive to set up and maintain, and some require you to work with several companies to keep you in compliance with Department of Labor regulations.
To help you find the best employee retirement plan companies, we looked for companies with the following qualities.
- They work with small businesses – even those that are very small, have never offered a workplace retirement plan before and don't yet have any fund assets.
- They have transparent pricing that makes it easy for small business owners to find plans within their budgets and compare costs.
- Pricing is also competitive, allowing businesses to establish quality plans for their workers at an affordable price.
- For 401(k) plans, they offer all-inclusive services with their plan offerings and include record-keeping, plan administration and advisory services in their costs.
- They have excellent customer service, with representatives who are willing to patiently educate first-time plan sponsors on their options and what they need to do to set up a workplace retirement plan.