Do I have the time, money, and HR staff resources to offer retirement benefits?

Employers often think they don’t have the resources to set up a staff retirement plan (like a 401(k) or 403(b)). But offering retirement benefits could be easier than you think.*

Do I have the budget?

Technology has allowed retirement plan providers to automate some tasks. As a result, providers like Just Futures can offer plans that may be affordable for many employers, even nonprofits and LLCs with just one employee.

Often, an employer with a handful of employees can outsource much of the retirement plan administration for two to three thousand dollars per year. This article about comparing plan providers explains costs. And you can contact us for a no-cost quote.

If a few thousand dollars is outside your budget, then other options include:

• Cheaper 401(k) or 403(b) options: Employers (“plan sponsors”) may lower their costs by passing costs on to employees (“plan participants”). Because Just Futures is committed to equitable retirement plans, we encourage employers to pay for at least some of the plan costs, whenever possible.
• SEP IRA: Compared to a 401(k) or 403(b), a SEP IRA has lower contribution allowances. But it can be simpler and cheaper to operate.
• SIMPLE IRA: Employers of up to 100 employees may set up a SIMPLE IRA. Compared to a 401(k) or 403(b), a SIMPLE IRA has lower contribution allowances and stricter employer contribution requirements, But it can be simpler and cheaper to operate.

Do I have the time?

Once you’ve chosen a plan provider, you can set up your plan. For Just Futures clients, this process takes around two months. For much of that time, you can sit back while administrators build your plan. Here are the key steps you’ll take:

1. Choose a plan provider. To make sure you’re doing right by your staff, you’ll want to compare some providers. Here’s a guide for vetting your options (~4 hours).
2. Meet with providers and share required information. Meetings include designing your plan and getting a platform tutorial (~2 hours).
3. Set up payroll integration or receive training on payroll file upload (~30 minutes).
4. Verify accurate processing of first payroll (~15 minutes).
5. Get an ERISA fidelity bond (~30 minutes).

Total estimated setup time: 7hr, 15 min

Do I have the HR capacity?

Once your plan is running, maintenance can be minimal. If you have a plan where you pay for a 3(16) provider who automates most of the plan administration work, we estimate that someone on your staff can complete ongoing tasks, e.g., onboarding new employees and verifying that your plan is IRS-compliant, in about one hour per year.

Hungry for more knowledge? Read on to learn about how a retirement plan can help you and your staff build towards financial security, even if you don’t come from money.

~Lisa, Manager of Coalitions and Worker Power

If your employer doesn't offer a retirement plan, or if they contract with a different administrator, we’d love to show you Just Futures’ services! You can reach us at info@justfutures.com.

*Time and budget statements in this article are estimates. Just Futures used its experience guiding clients through Just Futures’ process to make these estimates. Just Futures estimates may not apply to plans that require more employer involvement.

This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. Nothing contained herein is to be considered a solicitation, research material, an investment recommendation or advice of any kind.

The information contained herein may contain information that is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Just Futures explicitly disclaims any responsibility for product suitability or suitability determinations related to individual investors.

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Published April 29, 2025