Meet Linda, Healthcare Services
For the last 25 years, Linda has run a home healthcare services company in Virginia. She currently has six employees, meaning her small business will have to comply with the regulations outlined by VirginiaSaves; she must offer her employees a retirement plan to save in.
Luckily, Linda already has a company-sponsored 401(k) plan that satisfies the mandate. She’s been saving for retirement most of her life and understands the value of doing so. She wanted to maximize her own retirement savings while offering her employees the same benefit. Since she doesn’t work with a financial advisor, Linda wanted a 401(k) plan that offers a “do-it-for-me” approach—one that includes investment selection and management, fiduciary coverage, and plan design support.
Linda has also handled the payroll for her small business herself all these years, but as she prepares to hand the business over to her son, she knows new technology will likely need to be implemented to keep things running smoothly. She wanted to make sure her 401(k) could easily integrate with a payroll provider in the future to help streamline benefits processes for her son.
She decided a CoPilot Prime 401(k) plan—a fully-bundled retirement service with all the features she’s looking for—was a great fit for her small business and would allow her to do what she does best: focus on running her business. With most of her staff still quite young (and some fresh out of college), she selected an Age-Weighted Profit Sharing plan that allows her to receive a larger share of the profit share dollars. This plan design feature takes into consideration the age of the employee and how much more time they have to save before they reach retirement, which makes a lot of sense for Linda—as she’s getting close to retirement age and wants to save as much as possible to catch up on contributions. Linda also included a vesting schedule and eligibility requirements in her plan in hopes of promoting employee retention and commitment for the future.
Many small business owners can relate to Linda’s goals, attitudes, and challenges when it comes to running her small business while also saving for her future retirement.
Click the + below to learn more about Linda’s small business:
To learn more about choosing the right plan for your small business and explore our CoPilot plan options, check out the Retirement Plans Flowchart tool.
Linda selected a CoPilot Prime plan so she wouldn’t have to worry about the day-to-day tasks of running a 401(k). CoPilot Prime was designed to help relieve some plan administration responsibilities and reduce fiduciary risk, all while helping savers reach their retirement goals.
Linda offers a matching contribution to her employees as they save for their future. She also included a vesting schedule as part of her plan design. Learn more about the various vesting schedule options and requirements for your 401(k) plan.
Linda included automatic enrollment on her company’s plan to increase participation rates and help her employees get closer to retirement readiness. Use this guide to learn about PAi’s auto enrollment process and its benefits.
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CoPilot recordkeeping services include Years of Retirement calculations and savings alerts. Services for CoPilot are provided by Plan Administrators, Inc. (PAi), an Ascensus company. The Years of Retirement resource is for illustrative purposes only and is not, in any way, a guarantee of future results. CoPilot Prime is a suite of services provided by Plan Administrators, Inc. and PAi Trust Company, Inc. (PAi), which are Ascensus companies. CoPilot recordkeeping services include Years of Retirement calculations and savings alerts and are provided by PAi. Investment fiduciary services for CoPilot Prime are provided by PAi Trust, which is an affiliated business entity to PAi under common control and ownership interest. Services for CoPilot Prime Pooled Employer Plan are provided by PAi Trust Company, Inc., an Ascensus company. 401(k) plans are: Not FDIC insured | Not bank guaranteed | May lose value CoPilot IRA is a retirement service and is not an independent entity. Services for CoPilot IRA, including Years of Retirement and savings alerts, are provided by and through PAi Trust Company, Inc., an Ascensus company. PAi Trust Company does not provide any tax, legal, or investment advice. Individual Retirement Accounts are: Not FDIC insured | Not bank guaranteed | May lose value |