Step Two: Optimize Your Plan

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Today I want to talk about Step 2 of the Ultimate 401k Advantage 5 Step Process. That is optimizing your 401k or 403b plan.

But first, let me ask you a question.

The real question is, how can you as a company that sponsors a 401k or 403b plan, turn your plan from a liability into an asset that gives you an advantage in the marketplace, and become a 401k superhero to your employees?

That is the question, and these videos will give you the answers. Hey I’m Jonathon Schultheiss and welcome to the Ultimate 401k Advantage videos.

In the last video I talked about Step 1: Analyzing Your Plan. Before you optimize, you must have a starting foundation of where your plan is.

Once you know the stats on your plan, you can then start to think about ways to improve them.

The first part of step 2 is to have a goal and a purpose. If your plan is failing the testing and your highly compensated are not being able to participate, maybe your goal is fix that.

Or maybe your goal is not based on testing. Maybe your goal is just to have your employees saving more for retirement.

Here is something you may consider for either one of those goals. It’s what I call the 5 Auto Features.

Those are: Auto Enroll, Auto QDIA, Auto Escalation, Auto Re-enroll, and Stretching the Match.

Sometimes when I bring these features up, I get pushback. That’s when we talk about other ways to increase participation.

One of those ways is to implement an employee education process which also happens to be step number 5 of the Ultimate 401k Advantage Process.

A well run and implemented employee education campaign can really improve your participation.

Another way to fix the testing issues is to become a safe harbor. This will ensure that you don’t fail the testing.

This is just an example of one of the ways to optimize your 401k or 403b plan.

If you would like to learn more about how to optimize your plan and how to become a 401k superhero to your employees, click on the link above and you can download a free copy of my book, The Ultimate 401k Advantage, The 5 Step Process to Becoming a 401k Superhero to Your Employees.