4 reasons to start a 401(k) today
Keep your business moving forward by offering a low-cost retirement plan.
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, contactless or spatially distanced.
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, 76% want encouragement to save for retirement.
As a 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, 82% of employers identified that retaining quality employees was an important goal for their retirement plan.
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 have declined 5% since 2016, dropping slightly in each of the subsequent five years. 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.
Everyday 401(k) by J.P. Morgan is not an offering of JPMorgan Chase Bank, NA; clients will be directed to J.P. Morgan Asset Management, an affiliate.
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