Why It Matters

 

Your workforce, business, and competitive environment can change over time. A 401(k) plan designed several years ago may no longer reflect what your employees value or how similar employers are structuring their retirement benefits.

 

Periodically reviewing your plan design can help you understand where your plan stands and identify opportunities to better align the benefit with your company's goals and workforce.

 

Practical Ideas to Consider

 

✔ Review your matching formula
Is your employer match structured in a way that encourages employees to participate and save? Consider both the cost to the company and how employees experience the benefit.

 

✔ Consider profit-sharing opportunities
Depending on your plan design and business objectives, profit-sharing contributions may provide another way to reward employees while helping owners and employees save for retirement.

 

✔ Take another look at vesting
Vesting schedules can affect how employees perceive employer contributions. Consider whether your current schedule still aligns with your retention goals and overall benefits strategy.

 

✔ Benchmark your plan against peers

Understanding how your plan compares with organizations of similar size or within your industry can provide useful context around contributions, plan features, fees, and services.

 

A Common Mistake We See

 

Employers sometimes evaluate their 401(k) primarily from an administrative or cost perspective. But employees experience it as part of their overall compensation and benefits package.

 

Looking at the plan through both lenses can help you determine whether it continues to meet the needs of the business and its employees.

 

A Simple Takeaway

 

👉 Don't just ask whether your 401(k) plan works. Ask whether it's still competitive, valued by employees, and aligned with your company's goals.

 

If it's been several years since you last formally reviewed your retirement plan, we can help you evaluate your current fees, investments, services, and fiduciary structure against today’s marketplace.

 

The Guardian 401(k) Advantage is a monthly newsletter that answers key questions and delivers practical ideas to help you make informed decisions, support your employees, and stay compliant.