Technology Company

Software development  company in Sacramento. 

Goal: 

Seeking to attract and hire 30 virtual employees in 2 months

Situation before our help: 

Company did not have an existing retirement plan. 

Updates implemented:

Established retirement plan.

• 60 day eligibility – helps employer verify employees are a good fit and weed out poor fits 6% automatic enrollment – studies show that the opt out rate is negligible up to this percentage
• 4% Safe Harbor Match – incentivizes employees to maintain the automatic enrollment
• Added profit sharing with 3 year cliff vesting schedule – golden handcuffs to keep and retain good employees

• Profit sharing is intended to be 6%/yr to create 10% total employer contribution to the plan for long-term employees

• With the 6% automatic enrollment and the 10% employer matching, total contribution adds up to be 16% which would put majority of individuals on track for saving the right deferral amount to achieve a successful retirement outcome.