4 reasons to start a 401(k) today
Keep your business moving forward by offering a low-cost retirement plan.
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Many businesses have been forced to rethink the products they offer, how they serve their customers and what it means to be part of a team. And employees are leaning into some of the new realities of work — virtual, hybrid or physically in the workplace.
This is the time to keep building on your progress. As your business moves ahead in a changing marketplace, you have an opportunity to strengthen your relationship with your most valuable asset — your employees. A 401(k) plan shows that you’re invested in your team’s long-term success.
Here are four reasons why now is a great time to offer a 401(k) at your company.
1. Talent matters more than ever
Creativity and efficiency are huge competitive advantages. The knowledge and experience that key employees bring to the table are exactly what your business needs to keep moving forward. It’s more important than ever to invest in people who understand your business, have ideas for growth and can jump in to get things done.
2. You can be a leader — for your employees and your industry
Benefits are important to high performers, especially as they start families or begin to think about retirement. The fact is, employees need help saving for retirement, and they’re looking to their employer for guidance. According to a recent survey, 74% of employees believe their employer has a responsibility to help them save for retirement.
As a small-business owner, you know how hard it is to retain talent. A 401(k) plan can help you stand out, especially during challenging economic times. In fact, 84% of 401(k) plan sponsors stated that their plan has been effective in retaining quality employees.
Including a 401(k) plan as a benefit can make a big difference in the lives of employees. Workers reporting they or a spouse are participating in an employer sponsored retirement plan are 2x more likely to be confident about their retirement.
3. Retirement plan costs are going down
Overall, total retirement plan costs declined 10.3% between 2019 and 2023, dropping steadily in each year through 2023 (the most recent year that data was available). For example, Everyday 401(k) by J.P. Morgan℠ with enhanced administration services starts at $100 per month.
When you factor in tax credits currently offered by the U.S. government, your costs can go even lower. Right now, a business can receive up to $5,000 per year in tax credits for the first three years after starting a 401(k), and may receive additional tax credits of up to $1000/eligible employee to offset the cost of employer contributions.
4. It’s easy to get started
Everyday 401(k) offers simple solutions that allow you to set up your 401(k) online by selecting from ready-to-use plans. You also have the option to customize the plan even further to suit your needs.
Learn more about the Everyday 401(k) by J.P. Morgan
You can sign up for an Everyday 401(k) by J.P. Morgan plan online. Get started today.