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Why You Should Offer Your Employees a 401(k) Through a PEO

10 Jan


Retirement should be a breeze. After working your whole life, you deserve to sit back, kick your feet up, and soak in the sun. Or snow. Whichever you prefer.

But… these days, it isn’t so easy.

Having a solid retirement plan is vital to living a comfortable, financially-secure life after spending 30+ years building a career. Saving for post-work life is arguably one of the most important things that an employee should prioritize. Despite this, access to top-tier retirement plans has become increasingly difficult in the U.S. 

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It says a lot about you as a business owner when you have a positive impact on your employees, especially when it comes to their retirement. In the same way that they take care of your business, you should take care of them. But it can be difficult to know what type of plan is best for you to offer your employees. 

State-mandated retirement plans are becoming more common in the U.S., but that doesn’t necessarily mean that they are the best option. Although state-mandated plans offer retirement savings solutions for employees, typically through a defined contribution plan like an Individual Retirement Account (IRA) or a 401(k) plan, they often have rigid requirements and limited savings opportunities for employees. 

It’s a challenge to figure out what plans are best to offer your employees, especially as a small business owner. That’s where a partnership with a Professional Employer Organization (PEO) can help. Partnering with a PEO like VensureHR simplifies the retirement savings management process and help you navigate it seamlessly. Planning for retirement should be easy and accessible. Partnering with a PEO provides that simplicity.

What is a 401(k) plan?

The IRS defines a 401(k) as, “a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.” A customizable 401(k) plan, tailored toward each employee, is an effective and efficient way to prepare for retirement.

A 401(k) plan is one of the most widely used retirement savings plans across the U.S. due to its flexibility and value. In a 401(k) plan, employers also have the option to contribute to their employees’ accounts. 

These plans can be complex, especially if you run a smaller business and are trying to do it all on your own. With the expertise of a PEO, you can offer your employees the best bang for your buck retirement savings plans: with long-term value and security.

Why Should You Partner with a PEO for Retirement Planning?

Retirement planning can come with many questions, concerns, and confusion. By partnering with a PEO like VensureHR, this lengthy, often complex process is simplified and streamlined.

When offering a 401(k) plan through a PEO, the employer will enter into a contractual relationship with the PEO; also known as co-employment. This allows the PEO to take on certain responsibilities, effectively taking them off your plate.

As an employer, you wear a lot of hats. By partnering with a PEO, you are able to rid yourself of many administrative burdens and place them in the hands of capable retirement experts. It also essentially removes some of the compliance liabilities of the business owner, so you don’t have to worry about making costly mistakes that could negatively impact your business.

It is important that all your employees feel that they have the right plan for them. There is no “one size fits all” plan in retirement savings management. This is why VensureHR partnered with Slavic401k: to offer a variety of retirement options for you and your employees.

With a VensureHR 401(k) plan, employers can cost-effectively participate in the larger multiple employer 401(k) plan (MEP) or pooled employer 401(k) plan (PEP), which nearly eliminates all administrative burden and fiduciary risks that come with state-sponsored IRA plans. With our help, employers are able to create customized plans that work for their employees, instead of being stuck with a one-size-fits-all solution.

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Final Thoughts

Retirement savings management goes far beyond picking a plan. It is all about saving, planning, and preparing for life after your career: whether that’s under a tropical sun, in a cozy cabin in the mountains, or on a wide expanse of farmland. Wherever retirement takes you, we’ll help you and your employees get there. Learn more about VensureHR’s retirement offerings and how we can help you and your employees build a better retirement planning experience.

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