Employee Management

There’s no doubt that a strong retirement benefit is a powerful tool for luring and retaining talented and dedicated employees. In fact, it confers a significant edge on small outfits, since only 15 percent of companies with five to 99 employees offer “defined contribution plans,” as the IRS calls 401(k)s and IRAs.

Of course, given the costs associated with administering such a benefit and the matching contributions to your employees’ accounts, it’s also a fairly expensive way to keep your people happy. Yes, the government helps defray a significant portion of those expenses. All participants, company owners included, defer taxes on the wages they direct into a defined contribution plan. And your company can deduct its matching contributions and plan expenses. Still, it’s well worth your time to be sure that any retirement plan you set up makes the most of your investment.

They contain a step-by-step guide to picking a plan, a primer on the fees you can expect to pay, questions to ask a prospective investment adviser, and resources for further inquiry. Please read on.