Pros / Employee retirement-planning tools, such as income and retirement calculators, are available both through the website's online portal and as a mobile app.
Cons / SEP-IRAs, profit-sharing plans and owner-only 401(k)s are not offered.
Verdict / Prudential can help small businesses offer a comprehensive benefits package to employees by providing employee-retirement plans as well as group insurance plans.
Prudential is known for its individual and corporate financial solutions, including investments, insurance, and employee benefits. However, it also offers employee retirement plans, with a focus on 401(k) programs and individual IRA solutions. If you or your employees have an existing retirement plan, Prudential can help you rollover those plans so they are managed by one trustee, which helps eliminate higher fees and the administrative costs that come with using multiple service companies.
As with the best retirement plan services, Prudential allows both employers and participants to create and access their accounts from the website. Employees can also access their portfolio with their smartphone or other mobile device with Prudential's mobile app. Besides checking their portfolio balance, employees can use tools, like income retirement calculators, to determine how much money they should be setting aside for retirement.
Prudential doesn't offer some retirement options, such as profit-sharing, owner-only 401(k)s and SEP-IRAs, options that are best for micro companies, or the self-employed. However, traditional and Roth 401(k) and IRA options are still viable choices for small businesses and tend to be the ones most employers choose.
As part of its plan-maintenance services, Prudential lets employers define certain elements of the plan, such as how long an employee must work for you before they are fully vested and how much of a match the company will contribute to each retirement account. It will also take care of all of the annual required tests and reports to demonstrate your compliance with IRS and Department of Labor requirements.
Whether your employees are novice or expert investors, there is a robust selection of educational resources on the company's website that includes in-depth articles and videos for all learning levels and investment types (conservative, moderate, aggressive). Email and telephone support is available to both you, the employer, and your employees. The reps we spoke with were friendly and knowledgeable and if they didn't have an answer to our question, they steered us to the right individuals who answered our questions in depth.
Prudential is designed to help small business owners focus on the needs of their employees by providing several different retirement plans. Prudential can provide the guidance you and your employees need to starting saving as well as the more nitty-gritty details, such as the benefits and laws associated with retirement accounts. An additional benefit: It will take care of all the annual reports and tests required of small businesses by the IRS to help you remain in compliance with federal regulations.