Written by Michael J. Lamperd, Vice President, Benefits

Thinking about establishing a 401(k) plan? The Department of Labor’s Employee Benefits Security Administration (EBSA) provides a quick checklist, which you can find below:
o Have you determined which type of 401(k) plan best suits your business?
o Have you decided whether to make contributions to the plan, and, if so, whether to make non-elective and/or matching contributions? (Remember, you may design your plan so that you may change your non-elective contributions if necessary due to business conditions.)
o Have you decided to hire a financial institution or retirement plan professional to help with setting up and running the plan?
o Have you adopted a written plan that includes the features you want to offer, such as whether participants will direct the investment of their accounts?
o Have you notified eligible employees and provided them with information to help in their decision making?
o Have you arranged a trust fund for the plan assets or will you set up the plan solely with insurance contracts?
o Have you developed a recordkeeping system?
o Are you familiar with the fiduciary responsibilities?
o Are you prepared to monitor the plan’s service providers?
o Are you familiar with the reporting and disclosure requirements of a 401(k) plan?
For more about establishing and operating a 401(k) plan, click here. In addition, our Duler & Co. staff experts can provide you additional information and a consultation on establishing retirement plans for your company.

Questions posted in the comments will be answered by our expert staff.