Employer 401K Contribution to personal 401K plans

[mitchelt]

I currently work for my father in-laws company and we use an Investment Company to handle all of our 401K needs/accounts/investments.

Currently the company is made up of 40+ employees because there are 2 companies.

I am planning on purchasing the smaller side of the business and there will only be maybe 10 employees.

I still want to continue the employer matching program, and at the same time reduce our annual costs associated with using our current Investment Consulting Company and costs associated with the Investment Bank we use.

What is the easiest and least expensive way to do this...should I just have everyone sign up for their own account at one place like say Charles Schwab and setup a direct deposit?

My goal is to still provide this benefit to the employees, save money and eliminate any liability that may come with the us suggesting a place for them to use (Charles Schwab).

Any advice would be greatly appreciated.

Thank you!

Mitch

[QDROphile]

If you want to get away from the ERISA requirement for a trust to hold plan assets and the fiduciary responsibility for the record keeping that goes along with investments and compliance, you will have to depart from 401(a) and 401(k) and migrate to something like a SIMPLE. A SIMPLE has less flexibility and lower contribution limits, but it minimizes employer involvement and cost.

[mitchelt]

If you want to get away from the ERISA requirement for a trust to hold plan assets and the fiduciary responsibility for the record keeping that goes along with investments and compliance, you will have to depart from 401(a) and 401(k) and migrate to something like a SIMPLE. A SIMPLE has less flexibility and lower contribution limits, but it minimizes employer involvement and cost.

Thank you very much for the information...what you stated is my exact goal.

I looked up the Simple IRA options and cost and it looks like it will work perfectly.