We have a few clients with over 100 employees that will be required to participate in the CalSavers program in June 2020.
I am evaluating the pros & cons of advising them to adopt a 401(k) plan instead.
Pros:
1. Owners can take advantage of their own personal tax savings.
2. They can hire a pension administrator that will take care of setting this up and the related administration vs the client (or us) having to navigate the CalSavers program.
3. More investment selections
Cons:
1. Cost of hiring pension administrator, filing tax returns, and paying investment fees.
2. Possible requirement for employer to make contributions.
I would appreciate hearing thoughts from other practitioners.