Key Attributes of a Well Designed Defined Contribution Plan
When trying to assess important characteristics of a 401(k) plan, it is common practice for employers to ask, “How does our 401(k) plan compare to other plans? So, plan sponsors will ask their advisors to benchmark their plan versus industry averages to see how their plan measures up. Should we strive for average, or slightly better? What should be our goal?
At SMA Services Inc. we’ll help you work towards a comprehensive outline of your 401(k) plan key attributes. Following are the attributes we feel your plan should have:
- A Retirement Income Mentality: Help participants better understand their retirement readiness and address any gaps in their savings.
- A Thoughtfully Designed Plan: Design a plan that fits the needs for your employees.
- Top-Rated Investments: Provide a diverse array of investment options and formats to participants.
- Mindful Participant Diversification: Embrace assets allocation strategies, target-date funds and qualified default investment alternatives (QDIA).
- Valuable Employee Education: Host employee meetings on how to plan for retirement and how to usethe tools available to them. Help participants to feel empowered.
- Increase Contribution Rates: Educate employees to the retirement income mindset and successful savings behavior.
- Increase Participant Rates: Let’s get everybody involved.
- Compelled To Take Action: Take steps to help your current plan to be strategically aligned.
If you are compelled to take action, I would like to take that walk with you. I can help you assess your current retirement plan to determine if any changes can be made to help improve your plan to the state of excellence.
Kim Woods is a Registered Representative. Securities offered solely through Ameritas Investment Corp. (AIC), member FINRA/SIPC. AIC and SMA Services, Inc. are not affiliated. Additional products and services may be available through Kim Woods or SMA Services, Inc. that are not offered through AIC.