One of the most important things you can do as a business owner is to get the right retirement plan chosen for your employees. While this may sound like an easy task, it is anything but. The 401K is one of the most common retirement plans out there. A bundled 401K arrangement is when a company receives two or more services from the same firm, like recordkeeping or administrative services. Unbundling these services will allow you to choose a different third party administrator for a 401k plan. Below are some of the benefits that come along with unbundling your company’s 401K plan.
A More Customized 401k Plan Design
The third party administrator for a 401k plan will be able to work closely with you to optimize the design of your retirement packages. Having a plan that is both flexible for you and your employees is a must. Many of the most creative plans out there will allow employees to contribute as much as they want to into their existing 401K plan.
The third party administrator will be able to help a business owner get a 401K plan that allows them the maximum amount of tax benefits. Getting this type of personalized help with the retirement plans you offer employees will help you to avoid costly mistakes and tax issues along the way.
Make Switching Providers Easier
The next benefit that comes with unbundling your 401K is it will make switching providers much easier. When having a number of the services needed to keep your 401K running under one company, it can be hard to make a change. Instead of having to stay with a company that is not performing at the level you need, you can make a switch without a big headache when choosing to unbundle your 401K retirement plan.
