5 Mistakes Small Businesses Make When Setting Up a 401(k)

Setting up a 401(k) plan is one of the best things you can do for your employees. But there are common mistakes:

1. Choosing the Wrong Plan Type: Starter, Safe Harbor, and Traditional plans each have different compliance requirements.

2. Ignoring Secure 2.0 Credits: Many businesses don't realize they qualify for up to $15,000 in tax credits over three years.

3. Manual Payroll Processing: Manually calculating contributions is error-prone. Automated payroll integration through Finch eliminates this risk.

4. Skipping Compliance Testing: IRS penalties for non-compliant plans can be severe.

5. Not Offering Investment Choice: Modern platforms offer model portfolios and custom portfolio building.

GlidingPath helps you avoid all five of these mistakes from day one.