What Most Employers Don’t Realize About Their 401(k) Plan

If I could sit down with every plan sponsor for 30 minutes, here’s what I would say:

Your 401(k) plan is more important than you think.
It’s more complicated than it looks.
And you deserve to feel good about it.

Running a retirement plan in 2026 is harder than ever. And most employers were never trained for this part of their job.

My goal?
To make it easier so you can focus on running your business.

What I Wish Every Employer Knew About Their 401(k) Plan

1. Low Cost Does Not Always Mean High Value

I see many employers proud that their plan is “low cost.” And that can be a good thing.

But low cost does not automatically mean good value.

Where a strong plan focuses:

• Are fees reasonable for the services provided?
• Are we getting proactive support?
• Are employees actually benefiting?
• Are our providers helping us reduce risk?

You can have the cheapest plan in town and still have:

• Poor service
• Weak employee education
• Limited investment oversight
• No fiduciary process
• Costly mistakes

Value is about results, service, and reducing liability – not just price alone.

2. Verbiage Matters More Than You Realize

Words matter.

How your match is written.
How eligibility is defined.
How your plan document describes compensation.
How payroll codes contributions.

Small wording differences can create:

• Compliance mistakes
• Failed nondiscrimination tests
• Frustrated employees
• Costly corrections

Miscommunication causes mistakes and frustration.

That’s why details matter. That’s why process matters. And that’s why you shouldn’t have to navigate it alone.

3. Payroll Is Now a Pillar of Your 401(k) Plan

I never thought I would talk about payroll as much as I do today.

A few years ago, payroll was barely something I mentioned in connection with a 401(k).

Now? It’s foundational.

Your plan flows through payroll:

• Deferrals (employee & employer contributions)
• Loan Payments
• Eligibility Tracking
• Census (for compliance testing)

If payroll and the 401(k) recordkeeper are not aligned, the entire system can struggle.

A retirement plan does not operate in isolation. It relies on accurate data flowing directly from your payroll system.

And yes, that makes it more complex.

4. You Can Ask for More

Many employers don’t realize this:

You can ask for more.

401k Financial Advisors can help with:

• Clear fee benchmarking
• Ongoing fiduciary education
• Help with payroll integration
• Plan design strategy
• Employee education beyond enrollment
• Legislative updates

You deserve to feel confident, not confused, about your plan.

If your advisor or provider(s) makes you feel rushed, dismissed, or unclear, that’s a red flag.

This is your plan. Your responsibility. Your employees’ futures.

You deserve to feel supported.

5. Employees Who Feel Confident in Their 401(k) Feel More Confident in Their Employer

This part is powerful.

When employees understand their 401(k):

• They feel more financially secure
• They feel cared for
• They feel like their employer invests in them

Confidence creates trust.

And trust strengthens culture.

People feel better with clarity. When we remove confusion around retirement savings, we reduce stress – and that carries into the workplace.

A well-run 401(k) plan is not just a benefit.
It’s a leadership tool.

6. I Represent the Plan – Not a Product

This is important.

As a Retirement Plan Advisor:

I do not represent a mutual fund company.
I do not represent a recordkeeper.
I do not represent an insurance carrier.

I represent the plan itself. 

What does that mean, and why is it important?

My role is to advocate for the integrity of the plan – its design, its structure, its compliance, and its long-term success.

When conflicts arise between vendors, payroll, TPAs, or providers, someone needs to step in and protect the plan’s best interest.

That’s what an advocate does.

7. Hiring an Advocate Is Not a Luxury – It’s a Relief

Because here’s the truth:

Retirement plan administration can be hard.

And when something is hard (and carries fiduciary risk) having someone who understands the system matters.

My goal is simple: Make it easier for you.

So you can:

• Focus on growing your business
• Lead your team
• Serve your clients

While knowing your retirement plan is structured thoughtfully and monitored properly.

You deserve to feel good about your 401(k) plan experience.

Not overwhelmed.
Not uncertain.
Not hoping it’s “probably fine.”

Clarity builds confidence.
Confidence builds trust.
And trust builds stronger companies.

If you’ve ever thought, “This feels more complicated than it should be,” you’re not wrong.

It is complex.

But with the right structure and oversight, it doesn’t have to feel this difficult.