Offering a retirement plan is one of the most impactful benefits you can provide to your team—and a critical factor in attracting and retaining talent. But knowing when to start a plan or whether to change your current offering can be challenging. Here are key indicators that it might be time to take action.

Your Business Has Grown

 If your company has matured beyond the startup phase or you’re experiencing steady revenue and headcount growth, it’s likely time to formalize a retirement plan. Small businesses may start with a SIMPLE IRA or SEP IRA, but as the business scales, a 401(k) plan can offer more flexibility and higher contribution limits.

Tip: Once you have consistent profits and five or more employees, a 401(k) plan often becomes more cost-effective and beneficial than starter plans.

You’re Struggling to Attract or Retain Talent

 Today’s workforce values strong benefits. If you’re losing candidates to competitors with better retirement options—or noticing employee turnover—offering or enhancing your plan could make a major difference.

Tip: Adding a matching contribution or moving from a basic plan to a safe harbor 401(k) to simplify compliance and improve perceived value.

Your Employees Are Asking for It

Employee feedback is a powerful driver. If your team is showing interest in retirement readiness or asking about financial wellness, that’s a sign they’re ready for a plan—or an improved one.

Tip: Offer plan education, from a retirement plan specialized investment advisor alongside any changes to help employees make informed choices.

You’re Facing Administrative Frustrations or Compliance Issues

If your current plan is hard to manage, doesn’t integrate well with payroll, or you’re running into testing failures and penalties, it may be time to reevaluate your structure. Switching plan types or providers can simplify administration and improve outcomes.

Tip: Moving from a traditional 401(k) to a safe harbor 401(k) or even a pooled employer plan (PEP) could reduce headaches.

You Want to Maximize Owner Contributions

Business owners often start looking at plan design when they want to increase their own retirement savings. Depending on your goals, certain plans (like a new comparability profit-sharing plan or a cash balance plan) can allow much higher contributions than a traditional 401(k).

Tip: Work with your accountant or plan advisor to run projections on different plan types based on your compensation mix.

You’re Eligible for Tax Credits or Facing New Mandates

With federal and state incentives like those from the SECURE Act 2.0, there’s never been a better time to start a plan. Small businesses can earn up to $15,000 in tax credits over three years for starting a new plan.

Extra: Some states now mandate employer retirement options—so be sure you’re compliant or exempt.

Starting or upgrading your retirement plan doesn’t just help employees, it’s a strategic investment in your business. If you’re unsure where to begin or whether your current plan still meets your goals, reach out to a retirement plan advisor or CPA who specializes in employee benefit plans. A well-designed plan can grow with your business—and keep your team engaged for years to come.

Corrigan Krause Can Help

Contact the Employee Benefit Audit Team for information on becoming at client here.