Every year on National 401(k) Day, we're reminded how important it is to save for retirement.
That's true. But I think we're asking the wrong question.
Instead of asking employees, "Are you contributing enough?" Business owners should be asking: "Is our 401(k) still the right plan?" A company's retirement plan shouldn't be put on autopilot. Businesses evolve. You hire more employees. Revenue grows. Owners get older. Tax situations change. Payroll providers change. Retirement goals change. Your 401(k) should evolve too.
Five questions every business owner should ask
1. Are we paying reasonable fees?
Not necessarily the cheapest—but are they competitive and transparent?
2. Is our plan design helping or hurting us?
Many plans miss opportunities around employer matching, profit sharing, Safe Harbor provisions, automatic enrollment, Roth features, and owner tax strategies.
3. Are employees actually engaged?
A great plan means very little if employees don't understand how to use it.
4. Is administration taking too much time?
Technology and better integrations can dramatically reduce the work placed on HR and payroll teams.
5. When was the last independent review?
One of my favorite outcomes is telling a business owner, "Your plan is in great shape." The second favorite is finding meaningful ways to improve it.
My favorite part of this business
The investments matter. The tax savings matter. The compliance matters. But what I enjoy most is helping business owners create something that benefits both themselves and the people who help build their company. A well-designed 401(k) isn't just another employee benefit. It's an investment in people.
So on National 401(k) Day, whether you're an employee contributing every paycheck or a business owner sponsoring a plan, take a few minutes to ask one simple question: Could our plan be even better than it is today? Because most 401(k)s aren't broken. They're just neglected