Cost-effectiveness: There’s strength in numbers. By teaming up with other small businesses under the TBBA 401(k) Program, you can benefit from certain economies of scale and seamless processing that helps to reduce the costs associated with operating and maintaining a retirement plan.
Administrative Relief: The time it takes to manage a retirement plan can add up, and underestimating that time commitment is a common mistake of many employers. Small businesses typically do not have the resources to effectively manage the complex requirements of offering and administering a qualified retirement plan. The TBBA 401(k) will allow for outsourcing of all plan administrative duties – a benefit typically only available to very large corporations. Tasks such as annual nondiscrimination testing, employee eligibility tracking, contribution limit tracking, distribution of Summary Plan Descriptions, and other notices will be offloaded.
Fiduciary Risk Reduction: The TBBA 401(k) program is comprised of professional service firms that will assume certain fiduciary roles on your behalf. Fiduciary responsibility can be thought of as a relationship imposed by law where someone has voluntarily agreed to act in the capacity of a “caretaker” of another’s rights, benefits, and retirement plan assets.
Retirement Readiness: Workers say they will need to save at least $500,000 to feel financially secure when they retire, and having a retirement plan makes a significant difference in their abilities to save. Two-thirds of workers who do not have a retirement plan have less than $1,000 in savings. The TBBA 401(k) program is one way that you can help your employees and their families in their quest for retirement readiness—by providing them with a savings vehicle like a 401(k) plan.