While Professional Employer Organizations (PEO) offer convenience, there are several compelling reasons why moving your 401(k) plan out of your PEO can be a smart financial decision. Here's why:
- Increased Flexibility and Control: Opting for an independent 401(k) provider that offers a broader range of options and customizable features empowers you to tailor your plan to meet the specific needs of both your business and your employees. You’ll also have the flexibility to switch 401(k) providers if you discover a better fit for your needs.
- Personalized Support: PEOs often provide limited personalized support for you and your employees. Unbundling offers an opportunity to select a retirement plan provider and advisor who can deliver superior customer service, robust educational resources, and personalized guidance to help employees make better-informed decisions about their retirement.
- Lower Fees with Increased Transparency: PEOs typically charge higher administrative fees for managing your 401(k) plan and often bury these charges in their invoices. These fees will significantly impact your plan’s retirement savings over time. Unbundling your 401(k) may reduce your fees and provide access to a transparent fee structure.
- Enhanced Investment Options: PEOs often limit your choices to a small selection of investments. Moving your 401(k) enables you to explore a wider range of investment options.
- Access to Additional Features: Most 401(k) providers offer features such as online tools, retirement calculators, financial planning services, and mobile apps that can help your employees track and manage their retirement savings more effectively. Unbundling allows you to explore these features and select a provider that best meets your employees’ needs.
If you are relying on your PEO to manage your 401(k), learn how you can maximize the benefits of your retirement plan by contacting us at info@standardpensionservices.com or calling (516) 873-0090.
Investment Advisory Services provided through Aurora Private Wealth, Inc., a Registered Investment Advisor. Securities offered through APW Capital, Inc., Member FINRA/SIPC 100 Enterprise Dr., Suite 504, Rockaway, NY 07866 (800) 637-3211