Issue link: https://read.dmtmag.com/i/575161
4 Powersports Business Close-Up ® 4 01(k) S O LU T I O N S • Business tax benefits • A desire to help employees achieve a comfortable retirement • Competitive advantage when recruiting top talent • Increased employee loyalty, retention and job satisfaction DEALER MISCONCEPTIONS Nathan Fisher says the most frequent misconception he hears about offering a 401(k) program is that owners think their employees don't care if they have one. "They assume that their employees will not be able to save or that they do not have an interest in saving because they haven't requested a plan," Nathan Fisher said. Most industry studies, on the other hand, show that most American workers think they should be saving more, and they understand that they need a retirement plan. "They just don't know how to ask for it. They need it to be simple and they need somebody to help them with it. They may not want to go out on their own to research and read about it. But, if somebody comes to them with a good solution they understand and feel good about, they want that," Nathan Fisher said. "That's a very common misconception. The bottom line is most people understand they need to be saving for retirement, and most people want to do that." MAKE SURE YOUR PLAN FIRES ON ALL CYLINDERS BY SELECTING THE RIGHT PROVIDER A well-oiled 401(k) plan is only as good as the team servicing it. There are many 401(k) providers to choose from, and selecting the right one can be overwhelming. Plans with less than $20 million in assets tend to be underserved by the biggest well-known industry providers. Here are a few provider types that typically dominate the small plan space: • Some large payroll providers can bundle 401(k) services with their payroll processing services. • Some local brokers offer 401(k) services as an add-on to their personal wealth management services. • A select few registered investment advisers (such as Fisher Investments) specialize in the small to mid-sized business space. It is important for employers, including dealership owners, to be familiar with their role as a plan fiduciary, as required by the U.S. Department of Labor. Part of this role includes choosing a provider that is a good fit for your business. Below are some criteria to consider: 1. Administrative Support There are some administrative responsibilities that go along with offering a 401(k) plan. For example, remitting payroll, distributing employee notices and filing annual regulatory forms. Some providers assist with these duties, and some do not. It is important to understand how much administrative support a provider offers and if that fits the needs of your business. 2. Employee Support Some of the biggest frustrations for businesses who offer a 401(k) plan are: (1) getting employees to sign up; and (2) having a resource to answer their questions. For example, millennials tend to think they don't need to start saving yet, while employees age 55 and older often think it's too late to save for retirement. It's important to understand what type of personalized, in-person education the provider will commit to — not only on enrollment day but also in the months and years to come. 92 % of U.S. automotive dealerships offer retirement benefits to employees 23 % of powersports dealerships in the U.S. offer retirement benefits Retirement benefits Sources: National Automobile Dealers Association 2011 and 2013 Powersports Business Market Data Book