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Better Value From Your 401(k)

There are many options and decisions to make when choosing a retirement plan for your organization. A company-sponsored 401(k) requires many things, including process creation, decision-making on the plan administration, consistent financial reviews, and outside testing and audit costs.

Qualified retirement plans must provide benefits to plan participants in a non-discriminatory manner. Current required anti-discrimination testing involves Top-Heavy Determination, 401(k) Discrimination Testing, and 410(b) Coverage Testing. 

A 2016 survey by the Pew Charitable Trusts listed the top reasons small to medium-sized businesses don’t offer a retirement plan, with the most often cited reasons being:

  • The plan is too expensive to set up.
  • The organization does not have the resources to administer the plan.
  • Organizations are concerned about how to choose a plan provider.

This same survey also stated that “48% of departing employees said a lack of retirement benefits influenced their decision.”  

When a company exhibits interest in adopting the HCC 401(k) plan, our 401(k) specialist will contact you via email to overview the plan and setup process. After review, you will complete the simple Slavic Plan Evaluation Survey if you choose to move forward. Upon receipt of the completed survey, our 401(k) specialist initiates a phone conference with Slavic, our investment advisors from Goodworth Wealth Management, and your business’s interested parties.

This introductory phone conference will outline the plan’s services and features and answer any initial questions you may have. The second phone conference with Slavic is where you will set up the details of your plan (eligibility requirements, company match, and vesting schedule). The third phone conference is an optional call to discuss any lingering questions. 

When your company elects our 401(k) plan, Goodworth Wealth Management facilitates an employee enrollment meeting. This enrollment meeting presents the benefits of utilizing the HCC 401(k) plan and the available options for employees. Employees with immediate eligibility receive retirement plan information in their new hire packet. If there is a waiting period, Slavic automatically sends an email to the employee upon eligibility. HCC follows up with eligible employees as needed. Employees make their elections online, and Slavic sends the information to HCC to add to payroll.

HCC’s 401(k) Retirement Plan offers:

  • Plan Administration: HCC manages all aspects of the plan set up, new enrollments, and payroll deductions. Employees can view, manage, and update their personal accounts at slavic401k.com.
  • Compliance Monitoring: Slavic monitors the compliance plan and handles audits, testing, annual reporting, and participant statements.
  • Transparency: There are no set up fees or other hidden plan costs. Clients can review specific plan details at any time.
  • Liability: HCC carries the fiduciary and liability responsibility for the retirement plan.
  • Taxes: HCC is responsible for the completion and submission of the 5500 form. Company contributions to the plan may also be tax-deductible as a business expense.
  • Attract and retain talent: Company 401(k) plans are an attractive feature that job seekers often use as a reason for accepting an employment offer from one company over a business without a 401(k) plan.
  • Employee Resource: Goodworth Wealth Management and HCC are available to hold Employee Information Sessions at any time to answer specific employee questions about the plan. Certified financial advisors are available for ongoing assistance and advice.
  • Return on Investment: HCC offers a multiple employer plan (MEP) that provides economies of scale by aggregating assets and administration. This typically results in lower costs for businesses and, ultimately, better return on investments for employees. 

Adopting the HCC 401(k) simplifies being an employer and results in improved transparency, reduced expense load, and generally improved returns for participating employees. From start to finish, HCC guides you through the process of creating a retirement plan for your employees. If you are interested in learning more about the HCC 401(k) plan, please contact HCC’s 401(k) specialist, Kristine Jarboe, at [email protected].