Ubiquity Retirement + Savings has been an affordable provider of 401(k) plans, designed for small businesses, start-ups, and solopreneurs since 1999.
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Employers use a myriad of incentives to attract and retain top talent. Some have elaborate break rooms outfitted with ping pong tables and nap pods. Others offer “free-lunch-Fridays” or sponsor yoga classes. Many of these ideas are clever and cute, but these employee perks are no match for the long-term benefit of a 401(k) retirement plan.
A 401(k) plan lets employees put money into a tax-advantaged savings account, which they can then use to live off when they decide to stop working. You can begin taking penalty-free withdrawals as early as age 59 ½ or hold off on those required minimum distributions until 70 ½. If you fall upon hard times, it’s possible to borrow from your 401(k) like a low-interest loan as a last resort to bankruptcy or foreclosure.
Most 401(k) deductions can be set up to automatically deduct from a paycheck, so that money is “out of sight, out of mind,” which makes it much easier to save.
As you work to accrue your savings, your money will work hard for you – compounding in interest over the years and growing exponentially as your interest earns interest. Unlike a traditional savings account, the money put into a 401(k) does not count as taxable income until you begin taking it out later, so you save on your tax bill every year you contribute. Certain types of 401(k) (Roth) let you pay your taxes upfront if you prefer, so you can maximize the amount of money you have in your “tax-free” golden years.
As an added bonus, many employers are willing to match what employees invest in their 401(k) accounts. Why? Because the employer does not have to pay taxes on the contributed match. For the employee, this is literally free money. So, it’s a win-win for everybody.
For most working people, retirement income comes from any one or combination of the following sources: your social security benefits, any employer-provided pension, and your personal savings. Yet, with the future of Social Security uncertain, personal savings have become increasingly important. While there are other investment vehicles like IRAs, health savings accounts, and taxable brokerage accounts, 401(k) retirement planning continues to be the most popular option for several reasons.
One might wonder what’s in it for employers considering 401(k) retirement planning. Finding and training new employees is not only expensive, but it can also be bad for company morale when there is high turnover; not to mention the negative impact on the company’s effort to foster consistent relationships with customers and clients. Offering a 401(k) match is one way businesses are weathering the storm. While a 401(k) match is an added expense, it is an investment worth making.
There are many myths surrounding 401(k) plans for employers that lead small businesses to “avoid the hassle.” The truth is – companies like Ubiquity focus exclusively on 401(k) administration for small businesses, so it’s quite simple to get started. We offer four tiers of plans, ranging from $18 to $165/month with no additional fees.
Our 401(k) plan options for employers include all setup and administration, facilitation of contributions, employer support, a suite of financial wellness tools for employees, and loan preparation if necessary. For an additional fee, we can take care of tax filing and compliance support, too. For an industry-low flat fee, we also run the administration of the plan. With our team at the helm, you have the time and freedom to work with your chosen broker, who can oversee your investments.
Ubiquity offers 401(k) retirement planning made simple. You could have a plan up and running in as little as 15 minutes. Click here to get started.