A Business Owner’s Guide to Reviewing Employer Retirement Plans

As a business owner, reviewing your employer retirement plan is one of the most important steps you can take to ensure your benefits strategy keeps pace with your company’s growth and regulatory responsibilities. Many employers set up a employer-sponsored retirement plan and rarely revisit it—but that can lead to missed opportunities and compliance risks.

Key Reasons Business Owners Should Review their Retirement Plans

1. Stay Compliant with IRS and DOL Rules: Regular reviews of your employer-sponsored retirement plan helps to ensure you meet key requirements from the Department of Labor (DOL) and Internal Revenue Service (IRS). The DOL enforces fiduciary duties, fee transparency, and disclosure rules under ERISA, while the IRS oversees tax-related regulations like contribution limits, nondiscrimination testing, and timely filings. Staying current with these standards helps you avoid penalties and maintain your plan’s tax advantages.
2. Adjust Matching Contributions: Your business’s financial outlook may shift from year to year, and your retirement plan should be flexible enough to adapt. In profitable times, increasing matching contributions can reward employee performance, boost participation, and give you an edge in attracting talent. During challenging periods, temporarily reducing or pausing matching contributions may help you manage costs without eliminating the benefit entirely—demonstrating fiscal responsibility while still supporting long-term financial goals.
3. Revisit Vesting Schedules: Vesting schedules—how long employees must stay before fully owning employer contributions—play a major role in both recruitment and retention. Immediate vesting can help attract top talent in competitive industries, while graded or cliff vesting structures promote long-term loyalty by rewarding tenure. The right vesting strategy can reinforce your business culture and minimize turnover-related costs.
4. Consider Enhanced Plan Options: As your business grows, your employer-sponsored retirement plan should evolve to reflect the changing needs of your workforce. Enhanced plan options such as Deferred Compensation Plans allow high earners to save more beyond standard limits, offering targeted retention benefits. Employee Stock Ownership Plans (ESOPs) can improve morale, align employee and company interests, and even serve as a succession tool. Defined Benefit Plans and Life Insurance Strategies provide stable retirement income and added financial security, particularly for executives or aging employees.

Resources to Help Employers Strengthen their Employer Retirement Plans

To get the most from your employer retirement plan, it’s important to work with a financial professional who offers more than just setup. The right advisor can connect you with ongoing resources that support both your business goals and your employees’ financial wellbeing:

• Financial education tools for employees
• Annual plan reviews to ensure alignment with goals
• Connections to CPAs and tax attorneys for broader financial planning

Don’t Set It and Forget It

Regular reviews of your plan can lead to better outcomes for both your business and your employees. Be proactive—your future self (and team) will thank you. Explore how Forward Investment Services can help you set up, manage, and optimize an employer retirement plan tailored to your business goals.

_{This article is for informational purposes only and does not constitute legal, tax, or investment advice. Business owners should consult with a qualified financial advisor, tax professional, or legal counsel before making decisions about employer-sponsored retirement plans. Regulations and requirements may change and vary by state.}