Total guide to the CalSavers alternative for 401(k) plans
Nearly half of the private workforce in the United States does not have a savings plan in place for when they retire. In the growing uncertainty in the economic sector, there is a very strong possibility of employees struggling to make ends meet in the future without a safe exit strategy planned for their future. With pensions being offered by very few employers, the best chance for a comfortable retirement is to start thinking about a plan that suits your current and future needs and fits well within your budget and finances.
For nearly a decade, most states in the country have considered implementing some form of state-sponsored retirement plan. California has implemented one such plan that is expected to roll out over three years with a universal plan for businesses and companies of all scales based on their sizes. Known as CalSavers IRA, this plan allows employees to save for their retirement and provides a tax-suitable solution to their personal finances. While this state-sponsored plan is an invaluable tool to secure your financial future, there is an alternative 401(k) that can help you save more and keep a diversified investment portfolio. The information below will take a closer look at this type of 401(k) retirement savings plan.
More on CalSavers IRA
CalSavers IRA is the default state IRA that allows employees to contribute up to $6,000 annually, with no additional annual contribution limit offered to employees. The plan has asset-based fees that increase as your account balance increases, and there is no customizability available for your investment lineups. While the plan looks good on paper, the lack of flexibility means that the subjective experience can vary widely between different employees.
How is the Ubiquity 401(k) different?
The Ubiquity 401(k) is a customizable retirement plan that has been made to ensure maximum security for your future. Compared to the CalState IRA, the Ubiquity 401(k) offers a maximum employee contribution limit of up to $20,000, which is subject to cost-of-living increases in the future. Additionally, the plan offers an enhanced limit for employer contributions up to $40,500, for employer size of less than 100. The plan has flat fees that do not increase with your account balance, and you can enjoy the flexibility of customizable investments, personalized investment guidance tailored to your finances, auto-enrollment schedules, and more.
The plan is ideal for small business owners who are searching for a retirement plan that best suits the needs of both the employers and the employees. With more flexibility and fewer charges compared to the CalState IRA, this plan strikes the right balance between maximizing contributions, saving taxes, and providing a morale-boosting benefit to your business team.
Conclusion
The Ubiquity 401(k) retirement plan is a better savings alternative compared to the default retirement plan offered through the state-sponsored CalState IRA. With a greater degree of customizability and flexibility and lesser extra charges, the plan allows you to save more with a plan that best fits your finances. Additionally, the support offered by the team is ideal for small businesses that are looking to provide a safe retirement option to their employees.
