4 Things Business Owners Need to Know about Employer-provided Retirement Plans

Offering an employer-sponsored retirement plan is a great way for business owners to attract and retain employees while lowering taxes. As an owner, you want to build a business that isn’t struggling with high turnover rates, and you also want to get systems in place to keep things running smoothly without you having to oversee every single aspect. Increased tax incentives due to the latest SECURE Act updates don’t hurt either. But incorporating or re-evaluating an employer-sponsored 401(k), 401(k) Roth, SEP IRA, or SIMPLE IRA isn’t simple. As a business owner, you have a lot on your plate already, and a misstep in providing a retirement plan to your staff could leave you liable and in trouble with the IRS. Here’s what you need to know before choosing an employer-sponsored retirement plan. 

Choose an Investment Advisor 

Chances are, sorting through investment options is not what got you into business. Unless financial planning is your area of expertise, it’s best to delegate to an investment adviser representative. They‘ll help choose the funds that will make up your employer-sponsored retirement plan and monitor investments to make sure nothing needs to be shifted around. They can also offer coaching and strategies to your employees to meet their retirement-planning needs. Lowering your workload while helping your staff know how to enroll and why they should enroll in the first place is a win-win. 

Work with an Investment Company 

Before implementing an employer-sponsored retirement plan, you should choose an investment company to hold the assets. Again, delegating this step is one of the best ways to provide your employees and company with retirement-planning benefits without overcrowding your workload or liabilities. An investment company can work with your advisor to invest according to the direction provided. Another huge benefit of working with a professional investment company is the resources they can pass along to your staff. They can streamline employee access through user logins or even an app, which allows your staff to check their accounts and move funds as needed. 

Take Advantage of a Third-party Administrator 

Most business owners don’t realize just how much work goes into an employer-sponsored retirement plan behind the scenes, even if they already have a plan in place. Providers need to ensure their provided plan has compliance and non-discrimination testing done to ensure it benefits all employees equally, not just certain demographics. This is not something business owners want to attempt to oversee on their own because it only adds unnecessary risk. A third-party administrator can help dot every I and cross every T, keeping you in the clear with the IRS, along with handling the tax filing and legal planning documents. They can even help design your employer-sponsored retirement plan to ensure it meets your company’s demographics and goals. 

It’s Okay to Change Your Plan

The employer-sponsored retirement plans available to business owners vary– there’s no “one-size-fits-all.” Because of this, as your business grows and settles into its identity, shifts, or experiences a leadership change, it’s a good idea to evaluate whether or not your existing plan still fits the company’s needs. Leadership transitions and shifting workforce needs often merit a switch-up, and there’s nothing wrong with that. Leaning on professionals to help with this step can streamline growth or change. 

No matter if you’re ready to offer retirement benefits to your staff for the first time, navigating a business transition, or taking inventory of current business needs, relying on professionals to help can ease your responsibilities while freeing up your calendar. At Lighthouse Wealth Group, we’re passionate about equipping business owners to navigate every aspect of their professional and personal finances. That’s why our services include fee auditing for current employer retirement plans. If you need to clear some tasks off of your plate or just need a reliable second opinion, reach out to meet with us. 

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Lighthouse Wealth Group and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

801 Crescent Centre Dr.

Suite 600, Franklin, TN 37067

Email Us

Contact our support team

615-861-6122

Call our support team

Free Portfolio Risk Analysis

Calculate Investment Goals

Facebook Linkedin Youtube

Check the background of this firm on FINRA’s Broker Check

Riskalyze is an independent third party service provider and is not affiliated with Raymond James. eMoney is an independent organization and is not affiliated with Raymond James.

The Forbes America’s Top Wealth Advisors 2023 ranking, developed by SHOOK Research, is based on inperson and telephone due diligence meetings and a ranking algorithm that includes: a review of best practices, client retention, industry experience, review of compliance records, firm nominations; and quantitative criteria, including: assets under management and revenue generated for their firms. This ranking is based upon the period from 6/30/2021 to 6/30/2022 and was released on 4/4/2023. Investment performance is not a criterion because audited records rarely exist and clients have varying risk levels. Rankings are based on the opinions of SHOOK Research, LLC and not indicative of future performance or representative of any one client’s experience. Research Summary (as of April 2023): 39,007 Advisor nominations were received based on high thresholds. 22,243 Advisors were invited to complete the online survey. SHOOK has conducted over 17,546 telephone interviews with advisors. 3,557 Advisors were interviewed in-person at the Advisors’ location and 1,361 interview were web-based. Final list of the top 250 advisors was then compiled based an algorithm that considers both quantitative and qualitative criteria. This ranking is not indicative of an advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please see https://www.forbes.com/lists/best-in-state-wealth-advisors/?sh=181ba856ab97 for more info.

The Forbes Top Wealth Advisors Best-In-State 2023 ranking, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. This ranking is based upon the period from 6/30/2021 to 6/30/2022 and was released on 4/4/2023. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 39,007 nominations, 7,321 advisors received the award. This ranking is not indicative of an
advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please visit https://www.forbes.com/lists/top-wealth-advisors/?sh=4281b4c61c7c for more info.

*Forbes Best-in-State 2022 Methodology: https://www.forbes.com/sites/rjshook/2022/04/07/methodology-forbes-best-in-state-wealth-advisors-2022/?sh=19b3e6237fee

Forbes Best-in-State 2021 Methodology: https://www.forbes.com/sites/rjshook/2021/02/11/forbes-best-in-state-wealth-advisors-methodology-2021/?sh=4f642acb6d22

Tommy Doerfler, 2020, The Forbes Next-Gen Wealth Advisors rankings, developed by SHOOK Research, is based on an algorithm of qualitative criterion, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered are under 40, have a minimum of four years’ experience, and the algorithm weighs factors like revenue trends, assets under management, compliance records, industry experience and those that encompass the highest standards of best practices. Portfolio performance is not a criterion due to varying client objectives and lack of audited data Rankings are based on the opinions of SHOOK Research, LLC. Research Summary (as of April 2020): Out of 32,000 nominations received, 500 made the final list in 2020. Neither SHOOK nor Forbes receives compensation from the advisors or their firms in exchange for placement on a ranking. Raymond James is not affiliated with Forbes or Shook Research, LLC.  This ranking is not indicative of advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Please visit https://www.forbes.com/top-next-gen-advisors for more info.

**Raymond James Leader’s Council, Tommy Doerfler, (2014-2023): Membership is based on prior fiscal year production. Re-qualification is required annually.  The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of advisors future performance. No fee is paid in exchange for this award/rating.

***Above and Beyond Award, Tommy Doerfler, 2017: This ranking is not based in anyway on the individual’s abilities in regards to providing investment advice or management. This ranking is not indicative of advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Raymond James is not affiliated with SageSpring Wealth Partners.

©Lighthouse Wealth Group. Lighthouse Wealth Group, and SageSpring Wealth Partners are not registered broker/dealers and are independent of Raymond James Financial Services. Securities are offered through Raymond James Financial Services, Inc., member FINRA / SIPC. Privacy Notice. Investment advisory services offered through SageSpring Wealth Partners.

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site.

Certified Financial Planner Board of Standards, Inc., owns the certification marks above, which it awards to individuals who successfully complete initial and ongoing certification requirements.

Links are being provided for information purposes only. Raymond James is not affiliated and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.