Life as a small business owner can be hectic at times.

There are a lot of responsibilities on a day-to-day basis from figuring out payroll to delivering the highest quality products to your customers. One thing that may get put to the wayside is a retirement plan.

A survey of small business owners conducted in 2013 showed 60 percent were not saving the money they needed for retirement. The same survey showed 73 percent of small business owners were worried about maintaining their lifestyles in retirement.

Some business owners rely solely on their business as a retirement plan. While that may work, adding a diverse stream of resources provides a higher chance of success. One avenue is to provide a 401(K) plan for their employees and themselves.

“Business as retirement is the plan for a lot of us small business owners and it should certainly be a piece of it,” said James Ferguson, Certified Financial Planner and Managing Partner for Roan Capital Partners. “But you can’t count 100 percent on anything. Adding a 401(k) is almost like diversifying your investments. It’s a smart thing to do.”

Along with providing diversity to your retirement plan, there are other reasons for business owners to investigate the prospect of providing a 401(k).

1. Protection

One reason to consider getting a 401(k) plan is any money deposited into an account would be protected from lawsuits. Ferguson said small business owners cannot be sued and have their retirement money taken by another party. Having a protected retirement account can provide security against unforeseen circumstances.

2. Taxes

Any money placed into a 401(k) account by a business owner or employees is tax sheltered until retirement. Once retirement comes and it is time to start withdrawing, the money will be taxed at an income tax rate instead of a capital gains tax rate.

Small business owners can also receive a tax deduction for contributions to employee’s retirement accounts. The more money pumped into a 401(k) plan means more money is sheltered from taxes.

3. Provide for employees

Not only will a 401(k) offer protection from lawsuits and taxes, it also helps keep the most important people happy: the employees. Offering benefits is the best way to ensure employees remain loyal to the company and help it succeed.

An article in Forbes showed having happy employees contributes to higher profits. Many employees say a good retirement plan is one of the main benefits they want and can help lead to higher work satisfaction and help reduce turnover.

Some business owners may be worried about the cost to install a retirement plan. But technology and innovation have created many cost-effective options for small to medium sized businesses.

“Now there are a lot of online systems that weren’t around two or three years ago,” Ferguson said. “It’s pretty cheap. It’s about $100 per employee for the year. There are 40 plus options to choose from for investment. These companies also do all the compliance for you. They handle all the compliance most people aren’t even aware of when it comes to a 401(k).”

Below is a list of some companies that offer 401(k) plans to small and medium sized businesses. These are purely informational and should not be taken as an endorsement. Please click on the link for more information about plans and services offered.


ForUsAll is a company that was founded in 2012. This company was created by a group of financial innovators and technologists who reimagined the 401(k) from the ground up.


Guideline was founded in 2015. According to their website, they do not charge employees any fees on investments and offer transparent monthly pricing for employers.

Human Interest

Human Interest was founded in 2015. The company was created after the owners discovered how hard it was to set-up a 401(k) for employees.


Betterment was founded in 2008. They believe financial institutions should work for everyone and offer a variety of financial services.

Employee Fiduciary

Employee Fiduciary was founded in 2004. They aim to provide small businesses and their employee access to retirement plans that offer low prices and investment choices.


Ubiquity was founded in 1999. They work to empower small business owners and their employees to have a more secure financial future.

If you have any remaining questions about why a 401(k) is beneficial for your small business, please contact Roan Capital Partners at 423-863-5512.

Roan Capital Partners (“RCP”) is a registered investment adviser offering advisory services in the State of Tennessee and in other jurisdictions where exempted.  Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by RCP in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

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