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Managing a 401k for employees without a third party.
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Im curious as to what regulations are on businesses which offer 401k for employees. As many companies which provide 401k management charge a business tens of thousands of dollars plus very high fees on holdings, would a small business be able to simply open a brokerage account, withhold 3% from employee payroll, and manage the whole 401k process themselves? Tax forms, payments, etc. While allowing their employees to have their contributions ungarnished by say, Fidelity. (ignoring that those processes cost the business money in this scenario).

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6 years ago