Do You Offer Employees a 401k?

Hey! Any thoughts from guys who have a few employees or more?

I offer a Simple IRA. The business contributes 3% of the gross salary to the Simple IRA if the employee opts in. I started this because I wanted to have good recruitment and retention options.

@HBM Does it give you better options for talent acquisition? Do you have better quality candidates since you started offering it?

I don’t know if it has helped with talent acquisition but I think it has helped with retention.

When I started it I only had one employee. He was enthusiastic about it as he had been a fisherman most of his career and didn’t have anything pension plan. He opted to make a 10% contribution which inspired me to upgrade my 5% contribution to 10% too. I am also an employee, as my business is a S-Corporation.

When my son left a higher paying job and joined the business last year I encouraged him to be in the Simple IRA program. He came onboard at 5%. My 2 newest employees didn’t have pension plans but opted out due to debt for one of them and the other one was only going to work for me for several months.

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