401(k) Plan Design

The importance of plan design cannot be understated. Proper plan design is based on the company’s objectives.

In short, there are only three reasons for a company to sponsor a 401(k) plan:

Consider the following examples, and the reason each company might choose to sponsor a 401(k) plan:

Ex: Dentist office, highly paid, 5 employees:

Ex: Small manufacturing facility, 182 employees, hard to get help:

Ex: Contractor, 104 employees, 60% of work is prevailing wage:

Each company’s unique business circumstance, and the relative level of importance placed on the three reasons above, determine the best fit when designing a 401(k) plan. Whether an existing plan or a new plan, we start with what the company is trying to accomplish, then customize a plan together.