Bankrate: SIMPLE 401(k): Here’s how this small business retirement plan works
Author: Siân Killingsworth / 10 Jun 2019
Saving for retirement is no easy task. Not only is it increasingly difficult for Americans to put enough money away for a comfortable future, but it can be confusing to navigate the many savings vehicles available. Ubiquity Retirement + Savings founder and CEO Chad Parks, weighs in on considerations for setting up a SIMPLE small business 401(k) plan.
Chad’s main message: no matter the kind of retirement plan, read the fine print. Be sure you know all the fees you’re paying, who you’re paying them to, and how much of your account it’s eating. Any type of retirement plan can come with a wide range of fees, including management, participant and administrative fees.
“You need to ask the questions and say, what investments are you using? And how much do those costs as a percentage of my assets? Is there or is there not a flat participant fee?”
While enrolling in any employer-sponsored retirement plan with matching contributions is a great idea, savers should always be aware of how much those plans are costing them.