How to Ask your Employer to Start Offering a 401K

You have to start thinking like your employer! Think cost and effort.

The first thing that comes to your employer’s mind is: How much is going to cost me?

Besides mentioning the advantages of having a 401k such as employee retention and low-employee turnover, Your employer wants to know the following:

1. Cost involved?
2. IRS requirements?
3. Set up fees?

Remember, your employer runs a business for a living, you need to be prepared to answer all these questions! That’s why you need to be prepared.

Start by setting up a meeting with management or your boss so that you can bring the 401K issue to the table. Keep in mind the following during your conversation:

1. Don’t assume they know the process. Thus, make it easy for them to understand
2. Mention the plans and the options available 
3. If there is one plan in specific that you think will be the most beneficial, then mention it.
4. BRING SOLUTIONS TO THE TABLE!
5. Tell them the steps they will need to follow to open a 401K
6. NEGOTIATE

NEGOTIATE:

If your employer doesn’t want to match, then negotiate for them to just set up the plan.

Something is better than nothing.

Remember:

1. Do your research
2. Be prepared 
3. And Negotiate
4. Everyone is approachable!