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Employee Retirement Benefits for Small Businesses: Challenges and Solutions

August 26, 2021

Small Business Retirement Plan Employee Retirement Plans Webinars

the one minute takeaway

As more and more states move toward mandating retirement benefits, now is a good time to evaluate your options and determine if a 401(k) aligns with your organization’s needs. Whether you currently offer a retirement plan or are thinking of starting one, you can streamline your plan with HUB Retirement Select, a fully bundled 401(k) plan for small- to mid-sized businesses.

Title-Card-Small-Business-Retirement-Benefits

Employee Retirement Benefits for Small Businesses FAQs

I have less than 10 employees. Does my organization qualify for HUB Retirement Select?

Yes, our service options can accommodate companies of all sizes—from owner-only businesses to those with hundreds of employees.

Can I switch to HUB Retirement Select if my organization already has a retirement plan?

Yes. We are happy to help you transfer your existing plan, and will work with you to transition your current offering.

Can my nonprofit organization utilize a bundled retirement plan like HUB Retirement Select?

Yes, nonprofit organizations can offer both 401(k) and 403(b) plans. This means that whether your organization is for-profit or nonprofit, we can work with you to determine if HUB Retirement Select meets your organizations’ needs.

How can my small business with less than 10 employees keep 401(k) plan administration costs down?

While things like plan administration guidance and advisory fees have been limiting factors in the past, even small businesses with a workforce of under 10 employees can now access the support and resources they need through options like HUB Retirement Select.

The passage of the SECURE Act included an expanded tax credit for small businesses that helps make starting a retirement plan much more cost effective. You can read more about the expanded tax credit in our article Tax Credit for Retirement Plans That Small Businesses Shouldn’t Ignore.

What is the difference between HUB Retirement Select and state-sponsored programs like CalSavers in California?

We provide a comparison of state-sponsored Roth IRAs and employer-sponsored 401(k) plans in our article A State- or Employer-Sponsored Retirement Plan? Determining the Right Choice for Small Businesses.

You can also take a look at our article How 401(k)s and CalSavers Retirement Plans Stack Up for details on how California’s state-sponsored plan compares to a 401(k) plan offering like HUB Retirement Select.

What is the difference between a 401(k) plan and a SIMPLE IRA?

Although a SIMPLE IRA is offered through a company, each employee is setting up their own individual account. In a 401(k), the fees are typically institutionally priced, as they are with our HUB Retirement Select offering; since you can achieve economies of scale, the fees are reduced in comparison to retail investments.

In addition, contribution limits for a 401(k) are higher, particularly for employees over 50 years old, and there’s more flexibility in how employees can contribute to the plan. Employees exclusively contribute pre-tax funds to a SIMPLE IRA; with a 401(k), you can design your plan to have pre-tax and Roth contributions, which gives your employees greater flexibility and options with their contributions, and makes your benefits more competitive.

HUB Retirement Select

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Advisory services for HUB Retirement Select offered through Global Retirement Partners, a SEC registered investment adviser and wholly owned entity of HUB International.

HUB Retirement and Private Wealth employees are Registered Representatives of and offer Securities and Advisory services through various Broker Dealers and Registered Investment Advisers, which may or may not be affiliated with HUB International. Insurance services are offered through HUB International, an affiliate. Consult your financial professional for additional information about the provision of specific securities, investment advisory and insurance services by each broker‐dealer and investment adviser.