Collaborative Retirement Trust
401(k) Multiple Employer Plan (MeP)
Collaborative Retirement Trust
401(k) Multiple Employer Plan (MEP)
Collaborative Retirement Trust
401(k) Multiple Employer Plan (MEP)
Some of the reasons small business owners give for not offering a 401(k) or similar option include:
- “We aren’t big enough.”
- “It’s too expensive.”
- “It’s too time-consuming.”
- “My employees aren’t interested.”
At one time, these ideas may have been true; but today, the facts paint a different picture:
- Companies of any size (even those with just one employee!) qualify to start a 401(k).
- A retirement program has some of the lowest costs of any benefits program a small business owner can offer.
- Talent goes where it’s appreciated – offering a good retirement plan helps draw qualified individuals to your company and incentivizes them to stick around.
- Small business owners can easily outsource retirement plan management to avoid the administrative nightmare of doing it themselves.
- Most importantly: employees want it!
According to the Transamerica Center for Retirement Studies, 81% of prospective employees consider retirement programs to be a major factor in their decision-making process.²
Over half of employees surveyed by Charles Schwab said a 401(k) is their number-one choice of benefits programs. (90% ranked it as a top-three choice.)³
It can be challenging for small business employers to set up and maintain a retirement plan for their employees that is cost-effective, has low administrative hassle, and mitigates employer fiduciary responsibility. That is where multiple employer retirement (MEP) plans become the perfect fit. MEPs harness the economies of scale of multiple companies and leverage their collective strength in ways that a single employer could never do on their own.
Some of the reasons small business owners give for not offering a 401(k) or similar option include:
- “We aren’t big enough.”
- “It’s too expensive.”
- “It’s too time-consuming.”
- “My employees aren’t interested.”
At one time, these ideas may have been true; but today, the facts paint a different picture:
- Companies of any size (even those with just one employee!) qualify to start a 401(k).
- A retirement program has some of the lowest costs of any benefits program a small business owner can offer.
- Talent goes where it’s appreciated – offering a good retirement plan helps draw qualified individuals to your company and incentivizes them to stick around.
- Small business owners can easily outsource retirement plan management to avoid the administrative nightmare of doing it themselves.
- Most importantly: employees want it!
According to the Transamerica Center for Retirement Studies, 81% of prospective employees consider retirement programs to be a major factor in their decision-making process.²
Over half of employees surveyed by Charles Schwab said a 401(k) is their number-one choice of benefits programs. (90% ranked it as a top-three choice.)³
It can be challenging for small business employers to set up and maintain a retirement plan for their employees that is cost-effective, has low administrative hassle, and mitigates employer fiduciary responsibility. That is where multiple employer retirement (MEP) plans become the perfect fit. MEPs harness the economies of scale of multiple companies and leverage their collective strength in ways that a single employer could never do on their own.
There are plenty of reasons for offering a 401(k).
- Happy employees lead to higher profits.
- The more satisfied employees are with their work, the more productive they are… which generates more revenue, reduces inefficiency, and increases profit.
- Happy employees stay longer. Employers experience lower turn-over when they offer stable retirement savings platforms. And when you factor in the cost of replacing an employee, businesses are wise to keep the good ones as long as possible.
- The best talent goes where the best jobs are. The vast majority of job-seekers report that retirement benefits are a top factor in deciding to work for a company.

- Employers can save on taxes. Tax credits for simply offering a 401(k) and tax deductions for employer contributions mean more money to re-invest into growing the business.
There are plenty of reasons for offering a 401(k).
- Happy employees lead to higher profits.
- The more satisfied employees are with their work, the more productive they are … which generates more revenue, reduces inefficiency, and increases profit.
- Happy employees stay longer. Employers experience lower turn-over when they offer stable retirement savings platforms. And when you factor in the cost of replacing an employee, businesses are wise to keep the good ones as long as possible.
- The best talent goes where the best jobs are. The vast majority of job-seekers report that retirement benefits are a top factor in deciding to work for a company.

- Employers can save on taxes. Tax credits for simply offering a 401(k) and tax deductions for employer contributions mean more money to re-invest into growing the business.
However, there are also plenty of headaches and frustrations involved with managing a traditional 401(k) plan on your own.
However, there are also plenty of headaches and frustrations involved with managing a traditional 401(k) plan on your own.
However, there are also plenty of headaches and frustrations involved with managing a traditional 401(k) plan on your own.
Fees
It is not unusual for business owners to become overwhelmed by the sheer volume of fees associated with managing their own 401(k)s.
Liability
It is up to the employer to make sure the plan’s management and investment decisions are handled in the best interest of the plan participants at all times. If they are not, the Department of Labor will hold the employer directly responsible.
Time
The amount of time an employer spends on administrative tasks related to a 401(k) could be better spent doing things that grow the company and make more money.
Stress
Usually, whenever employers move away from their area of expertise into the world of finance and retirement investing, anxiety and aggravation are far behind.
Fees
It is not unusual for business owners to become overwhelmed by the sheer volume of fees associated with managing their own 401(k)s.
Liability
It is up to the employer to make sure the plan’s management and investment decisions are handled in the best interest of the plan participants at all times. If they are not, the Department of Labor will hold the employer directly responsible.
Time
The amount of time an employer spends on administrative tasks related to a 401(k) could be better spent doing things that grow the company and make more money.
Stress
Usually, whenever employers move away from their area of expertise into the world of finance and retirement investing, anxiety and aggravation are far behind.
Fees
It is not unusual for business owners to become overwhelmed by the sheer volume of fees associated with managing their own 401(k)s.
Liability
It is up to the employer to make sure the plan’s management and investment decisions are handled in the best interest of the plan participants at all times. If they are not, the Department of Labor will hold the employer directly responsible.
Time
The amount of time an employer spends on administrative tasks related to a 401(k) could be better spent doing things that grow the company and make more money.
Stress
Usually, whenever employers move away from their area of expertise into the world of finance and retirement investing, anxiety and aggravation aren't far behind.
Do not let it happen to you. You are standing at a crossroads.
Will you continue to struggle through a traditional 401(k) model… or worse for you and your employees, not participate at all? Or will you choose to focus your resources on running your business instead of a retirement plan?
Do not let it happen to you. You are standing at a crossroads.
Will you continue to struggle through a traditional 401(k) model—or worse for you and your employees—not participate at all? Or will you choose to focus your resources on running your business instead of a retirement plan?
Download a copy of our complimentary "Collaborative Retirement Trust" brochure!
Download your complimentary guide!
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Download a copy of our complimentary "Collaborative Retirement Trust" brochure!
Download your complimentary guide!
We will get back to you as soon as possible
Please try again later
Download a copy of our complimentary "Collaborative Retirement Trust" brochure!
Download your complimentary guide!
We will get back to you as soon as possible
Please try again later
Terry E. DuPont, CRPS, CPhD, CWPP
President & Chief Success Officer
DuPont Wealth Management