In today’s 401k world, the focus is on integration and automation. With that being said, how does integration and automation actually affect your business, and should you even consider it as an improvement?
It’s our opinion at The 401k Source, that automation and integration of your 401k is a necessity. This is especially critical for small businesses with highly utilized staffs. Outsourcing this responsibility is not only less expensive, but it also lessens the liability to you, and to your business.
What this means is that your 401k Record-keeper is now able to integrate with your payroll system. Doing this means they will automatically pull the correct amount of funds each pay period, and contribute those funds directly to the participant account. Using this process accomplishes three very important things:
- Saves your staff time
- Saves your company money
- Reduces human error (Human error is the most common cause for failed Department of Labor examinations)
Another critical aspect is the outsourcing of the delivery of retirement plan disclosures and notifications. There’s no reason for you to be responsible and liable for this process. Remember these disclosures and notifications have to go to all plan participants, whether they are current or past employees. Utilizing this process is going to be less expensive for your company, and certainly easier for you and your staff.
In summary, automating your 401k plan absolutely makes dollars and sense. It saves your company money, it allows your staff to be more efficient, and it lessens your overall plan liability.