The labor market is tight, which means small business owners have to go to great lengths to recruit and retain top talent. One perk which is becoming almost a requirement is the 401(k) plan. But can small business owners afford to offer it? In this video, Donna Fuscaldo, a senior finance writer with business.com, interviews Daniel Beck, CEO of 401GO, about the costs associated with 401(k) plans and how small business owners can offer retirement savings to employees without breaking the bank.


Time Stamps

0:00 Donna Fuscaldo, a senior finance writer at business.com, introduces Daniel Beck, CEO of 401GO.
1:15 Over the past five years, 401(k) plans have come down in cost and are now affordable for all sized small businesses from the one-person shop to the 100-strong.
1:41 Beck explains for companies dealing with high turnover costs not offering a 401(k) plan can be more expensive than providing access to one.
2:20 When determining how much of a 401(k) plan you can afford, the biggest decision is if you should offer a match or not.
3:32 For small businesses, Beck says a good plan to consider is a Safe Harbor 401(k) plan because compliance requirements are built-in.
4:52: Setting up a 401(k) plan has gotten a lot easier in recent years with technology automating several aspects of the onboarding process.
6:45 The costs associated with offering a 401(k) plan include the administrative fees, which are the responsibility of the employer, and an asset fee, which the employees pay.
8:52 To ensure employees participate in the plan, make sure to offer a broad selection of investment choices and include impact-investing options for younger workers.
11:30 The federal government is incentivizing businesses to offer 401(k) plans by letting them defer many of the costs associated with the plan and recoup them later as a tax credit.
13:16 Companies that are not offering employees a 401(k) plan are at a disadvantage and will have a tougher time recruiting and retaining talent.

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