Employer may have some obligation to contribute if plan is deemed top heavy. Employers are not required nor obligated to make any contribution to their employees retirement accounts. These plans usually are best for larger companies because of the costs associated with documentation, cost associated with setting up plan and cost associated with administering the plan. Generally, outside third party administrators are hired to oversee the requirements of the plan, top high testing and the like. 401K Plans can be add-ons to Profit Sharing, Defined Benefit Plans.
Turnkey plans available.
Investment choices generally range from 8 to 37 mutual funds, or variable annuities. Some 401K plans permit participant directed individual stock transactions, and some permit company stock purchase within the plan. Some 401K mutual fund, variable annuity companies offer credits to new accounts to offset expenses associated with 401K account transfers from one mutual fund, variable annuity company to another. Some plans permit direct loan, hardship loan, disability loan provisions. Participants can start, stop contribution during course of year, as determined by the company.