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Can I offer a 401(k) plan to my employees in Tennessee? What are the requirements?

Requirements for Offering a 401(k) Plan to Employees in Tennessee

If you are an employer in Tennessee, you can offer a 401(k) plan to your employees. However, there are certain requirements that you must meet to do so.

According to the Tennessee Department of Commerce and Insurance, employers who offer a 401(k) plan must comply with the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC) [4]. This means that you must follow certain rules and regulations regarding the administration of the plan, including:

  • Ensuring that the plan is available to all eligible employees
  • Providing employees with information about the plan, including investment options and fees
  • Making contributions to the plan in a timely manner
  • Monitoring the plan’s investments and fees to ensure that they are reasonable

In addition, you may need to work with a financial advisor or third-party administrator to help you set up and manage the plan [4].

Retirement Plans Available to State Employees in Tennessee

State employees in Tennessee have access to several retirement plans, including:

  • Comprehensive retirement plan [1]([2]:)
  • Tennessee 401(k) Plan [2]
  • Hybrid Retirement Plan for State Employees and Teachers [3]([4]:)

The comprehensive retirement plan is available to all state employees and provides a defined benefit pension plan. The Tennessee 401(k) Plan is a defined contribution plan that receives contributions from both employees and employers. The Hybrid Retirement Plan is a combination of a defined benefit plan and a defined contribution plan [5].

It is important to note that these plans are specific to state employees and may not be available to employees of private companies. If you are an employer in Tennessee and want to offer a retirement plan to your employees, you may want to consider a 401(k) plan or another type of defined contribution plan.

[5]:

Source(s):
Jurisdiction

Tennessee