Ubiquity

Category: 401(k) Plan Information

Get the most up to date 401(k) Plan Information from Ubiquity Retirement & Savings. Find the most recent rules and regulations, made easy to understand, along with tips and advice from our team of 401(k) planning experts. Free consultation- call Ubiquity today at 855.466.5825.

An online 401(k) offers small businesses many advantages, including payroll integration, lower plan sponsor costs, lower employee costs, and easier employee onboarding. Your small business and employees may both benefit by switching from your traditional 401(k) to a more flexible 401(k) offered by an online provider like Ubiquity. Continue reading to learn about all the benefits of a technology-driven retirement plan for your company.

Online 401(k) Provider Benefits from an Employer Perspective

If you’ve considered switching out of a traditional 401(k), here are a few compelling reasons to go online:

Payroll integration: Traditional 401(k)s rely upon a person within the company to manually manage important aspects of the plan. This work can be tedious, time-consuming, and fraught with errors. The 401(k) business process is highly regulated by the Department of Labor and the IRS, so mistakes are not only a pain to fix, but they are also expensive.

Manual headaches cited by HR professionals when running payroll include:

  • Uploading files to the 401(k) recordkeeping system
  • Calculating new employee eligibility
  • Adding new employees to the defined contribution plan (which is a big issue for fast-growing programs)
  • Updating 401(k) deferral rates each time employees make a change
  • Calculating employee matches, vesting, etc.

By contrast, you can work with an online 401(k) provider with the capability of sharing data with your cloud-based payroll system. Someone in your company can still oversee the critical aspects of your plan, but your payroll and HR teams no longer need to cope with all of the manual tasks.

Low fees: The retirement industry is notorious for excessive fees — especially when it comes to plans from legacy financial institutions. Traditional 401(k) programs were written for huge corporations and are priced accordingly. Today, online providers such as Ubiquity focus exclusively on smaller businesses and offer low-cost plans with transparent fee structures.

Fiduciary coverage: By law, a 401(k) fiduciary ensures that all employees have access to a well-managed defined contribution plan. Large companies source 401(k) management to HR and benefits professionals, but most small businesses don’t have that sort of luxury. Often, the fiduciary responsibilities are added to the business owner, CFO, or HR head’s already-full plate. As an online 401(k) provider, Ubiquity offers 401(k) products that come with fiduciary coverage.

Let your provider absorb that responsibility, place your full focus on growing your business.

Online 401(k) Provider Benefits from an Employee Perspective

Online 401(k) providers understand how to meet the challenges and expectations of the modern era by offering:

Convenient, transparent plans: Online plans are easier and more convenient for employees to evaluate. Through Ubiquity’s many educational articles, employees can learn more about saving for retirement. We speak your employee’s language to help them make clear choices about how they’ll save for the future.

Fast enrollment: Enrollment procedures are boring at best and intimidating at worst. Completing paperwork and selecting investments pose hurdles to maximizing retirement savings. Instead, employees can effortlessly auto-enroll with Ubiquity in minutes at no extra cost. Studies show auto-enrollment can boost participation rates by 82 to 96 percent.

Digital platforms: After employers set up the plans, employees can review their accounts online or through mobile apps. Features like rebalancing or contribution changing are made accessible to all through a user-friendly dashboard.

Financial wellness tools: Ubiquity customers have access to Edukate’s complete arsenal of online financial wellness tools. These engaging benefits platforms empower employees with personalized financial guides, games, tools, and features that boost plan participation rates, as well as individual retirement savings.

Support: We support employees to work with brokers of their choice to build robust portfolios. They will have full access to a broad spectrum of investment choices, including mutual funds, managed accounts, annuities, and employer stock. Whether employees are looking to hand-pick investments from over 20,000 mutual funds and ETFs, or select a variety of turnkey investment lineups, Ubiquity offers the freedom of choice.

Communication: While some online providers only offer a chat line of dialogue, employees are welcome to call Ubiquity directly, toll-free, to have their most pressing questions answered by a live person. Though plan participants can also find most, if not all, of what they need through our online portals, we value personalized customer service equally.

Low fees: Not only are fees lower for employers, but participant fees are often lower than with traditional 401(k) plans. Unlike certain competitors, Ubiquity does not charge any fees for Assets Under Management.

Saving For Retirement Has Never Been So Easy For Employers and Employees

Social Security was once seen as a crucial safety net that allowed workers to enjoy their golden years. Today’s workforce, however, has bigger plans. Nearly a quarter of one’s life is spent in retirement. Shouldn’t these years be free from financial worry? Let Ubiquity light the way toward a path of prosperity so that you can fully enjoy it.

The good news is that most retirement fund shortfalls are driven by poor planning and misinformation. While traditional 401(k)s were confusing for small businesses to set up and administer and even more puzzling, for employees to enroll in and manage, the growing pool of affordable, flexible online 401(k) providers deliver a much-needed solution for all. The online 401(k) provider reduces the complexity of retirement planning to help companies offer a technology-driven benefit that is surprisingly simple to maintain.

It’s no secret that the life of a small business owner is a lot of work. Especially in situations where you only have a few employees (or none at all), you have to act like the Swiss army knife of your business––ready for anything and prepared for any situation. So, why add the hassle of having to pay for and run a retirement plan along with everything else? You might even wonder, is my business too small to for a 401(k) plan?

Here’s the scoop: A 401(k) is no longer a benefit reserved exclusively for large businesses with budgets to match.

There are budget-friendly, easy-to-use 401(k) solutions designed specifically for small businesses. Small business owners can now take advantage of the business tax benefits of a 401(k) plan and offer competitive retirement plan benefits for employees.

Not too familiar with 401(k) plans? No problem.

What is a small business 401(k)?

First things first: A 401(k) plan is a type of company retirement plan under Section 401(k) of the Internal Revenue Code. That part isn’t so important — here’s what is: A 401(k) allows you to save for retirement by putting away money on a pre-tax basis, which helps you to lower your taxable income. What’s that mean to you? It means you’ll get less of a tax bite on your annual salary in the short term, while your long-term investments grow tax-free until you’re ready to retire. Some 401(k) plan providers (including Ubiquity) also offer an after-tax (Roth) option, which means you won’t be taxed at the time you withdraw that money because you’ve already paid taxes on it.

A small business 401(k) is defined as a 401(k) plan for a company with anywhere from one to 100 employees. Here at Ubiquity, we specialize in the retirement plan needs of small and growing businesses, including owner-only and start-up businesses.If your business only employs you, your spouse or partner, and employees who would not be eligible to participate in a plan, a Single(k)® plan would your best option.

Small business 401(k) plans offer unique benefits to both business owners and their employees who participate in the plan.

Busting 401(k) Myths

Myth #1: 401(k) plans are too expensive for small businesses.

It’s true that many 401(k) plans are designed to only suit larger businesses. But the growing trend is to offer efficient, Web-based 401(k) plans that are more affordable to businesses of all shapes and sizes. Plans cost less than a daily latte, and employers have options for splitting costs with their employees.

Myth #2: 401(k) plans require an employer match.

An employer match or profit-sharing contribution is entirely optional with a 401(k). If you choose to offer this feature to your employees, it could help to boost participation. Keep in mind that employer contributions are also tax-deductible for your business.

Myth #3: Our employees won’t participate because they don’t make enough money.

There is no minimum contribution required with a 401(k). Offering an employer match can provide additional incentive for your employees to participate in the plan.

Myth #4: It’s too complicated.

Starting a 401(k) plan doesn’t have to be convoluted. With the right plan, you can get a new plan running in just a few hours of your time. And it’s easy to manage, with tools and reports available right at your fingertips.

close

Read Ubiquity’s 3 Steps to Building Financial Security in an Economic Downturn

Read Now
Read the Definitive Guide to Small Business 401(k)
Download Your 401(k) Guide Now

© 2020 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

Facebook Twitter LinkedIn YouTube

© 2020 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

Credit Card Logos