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The Business of Savings
Now a 401(k) plan that’s easier to set up than voice mail
For those that have never had a 401(k) plan, it can seem like a lot of paperwork and hassle to put a retirement plan in place. Well, things are changing as it’s gotten a lot easier. A few leading providers have completely eliminated the paperwork from purchase to completing the setup instructions online so your plan is ready to roll out in 5- 10 business days. Completing the online setup questions typically takes 15-30 minutes depending on your plan’s complexity.
If you have a 401(k) plan and are considering switching, you’re in for a nice surprise. Most find the online process is a breeze compared to the old paper way. The benefits are at least fourfold:
Lowers the cost of the plan: This may be the most obvious. When you eliminate paper costs and don’t need an army to manage plan setup and administration, a provider gains cost efficiencies that allows it to offer lower prices for setup and administrative services. If you compare 401(k) plan costs, you can pretty quickly tell which providers these are.
Saves time and your plan launches faster: It cuts out the back and forth paperwork which takes time and delays your rollout.
Eliminates confusion and complexity: Online setup can be much more intelligent than paper-based processes. An online setup only asks you the design questions pertinent to your company’s plan instead of showing every conceivable scenario possible. Paper-based plan establishment kits are rarely customizable so they can be pretty thick documents that show literally everything the provider can manage. That’s a fun read.
Reduces errors and delays: With online setup, information typically goes right into the providers systems so your plan is designed the way you intended. In paper-based kits, there can be manual errors re-entering the information into the provider’s system.
Pair an online system with top service, and you’ll have a great experience. Typically, expert Customer Success Managers will work a launch plan that ensures you get through the online process easily, that your payroll is ready to roll with the 401(k) information, and you have everything needed for your company and employees.
Whether you’re starting or switching 401(k) plans, a smooth, well-orchestrated online process is the way to go. And yes, you’ll likely find it is easier than setting up voice mail! Now you’re ready to save for a brighter tomorrow with a lot less hassle.