Any shop owners offering 401K benefits?

Tom Technician Texas Posted   Latest   Edited  

Good day all, just a question to see if there are any shop owners offering 401K benefits for your employees. I have a shop of under 10 employees. Any best practices, recommendations, suggestions welcome. I wasn't sure if this was affordable or could be offered in a small shop environment. If so, can you please let me know of any companies that you are working with or worked in the past. Thanks for your input!

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Mike Educator
North Carolina
Mike
 

This isn't the answer that you were looking for, but since there are no others yet I will throw this out there. Clark Howard may have some good advice on the topic at clark​.​com Hopefully someone with a better answer will chime in soon.

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John Owner
California
John
 

Start here. www2​.​ascensus​.​com

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Obie Technician
Washington
Obie
 

The last shop I worked at before I retired had a 401k plan. It was an optional benefit and the employer matched our contributions to a maximum per year. For me it was a really good deal. I understood there were employer benefits as well, but do not know the details of that end of the program. There were 6 employees plus the owners involved. I suggest a meeting with your accounting team and…

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Scott Owner/Technician
Michigan
Scott
 

i do a simple-ira thru vanguard simple ira is basically a little to no-fee 401k with almost zero paperwork for employers with under 100 workers consult your cpa but the most common basics are any employee that regularly makes 5k a year is eligible to participate employee can defer up to 13.5k per year into the account employer matches the employee deferral dollar for dollar up to 3% of the…

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Jamey Owner/Technician
California
Jamey
 

I have a Simple IRA plan. I match 3% of employees contributing. No vesting period. The employee is in complete control of the money. I just send in the tax deferred payments every month.

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Bill Owner/Technician
Michigan
Bill
 

I would recommend looking into a SIMPLE IRA plan. You can get this setup pretty easy. Yourself and employees can get up to 3% match of gross pay and also contribute up to $13.5K per year above that. You can choose if you want a employee to have to work for you for X time before being eligible. American funds or Vanguard are good low cost choice's. You can pick your fund. Consult your accountant…

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Scott Owner/Technician
Michigan
Scott
 

I wouldn't call American funds low cost… typically they charge 5.75% sales charge plus most of the funds have higher expense ratios I am very happy I switched from AF to vanguard no sales charge and access to super low expense ratio funds

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Michael Owner/Technician
Connecticut
Michael
 

Tom, Good job in looking into this, as too many shop owners complain about getting help, but do nothing to help attract and retain employees. Obviously do some research, talk to your accountant and other financial services professionals. Here are a few items to consider: Understand the difference between the 2 (or more ) programs SIMPLE IRA- is just that, very simple, easy to admin and…

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Scott Owner/Technician
Michigan
Scott
 

You are confusing regular ira limits with simple ira limits simple ira is 13.5k per year regular ira(personal non employer account) is 6k

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Thomas Technician
Virginia
Thomas
 

Vanguard is great I love thier ETFs if someone cant afford to throw $5k into a money market. Also check out Schwab Simple IRAs. Schwab has a great account layout and I also love their Intelligent portfolios. You don't even have to sign up but if you answer their questions as if your going to create an account you get a good insight to if you contribute X over Y time your projected amount is Z (…

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Anthony Owner
New York
Anthony
 

been doing 401k for me and my tech for 10 years. earning 12%. simple ira. we both put in 3% of our gross, and my company matches 3%. i offered this to a tech years ago and he did not believe in investments so he had to sign off so i could invest. we use American Funds, i think their agent commissions are high but the local agent is a customer. also i would not suggest the owner managing…

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Eric Manager
Arizona
Eric
 

We started giving the option for 401K when we had 8 employees. Matched to 1% but changed that to 2% last year. Have a good local investor to help navigate all the ins and out. If you have people interested then would be good to do and you could also jump on it the help with retirement. No restrictions on owners to invest. Would search out a good local investor to answer all your questions and…

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Milt Mechanic
Hawaii
Milt
 

I own an RIA firm and over 20 yrs in the business and am involved in a car operation as well. 401k's are harder to setup, harder to administer, limit your investment choices often and don't really make sense for 10 employees or less. A Simple IRA is the way to go as many have mentioned here. This site has helped me out reading the posts so happy to answer any questions.

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