401k plans for small companies?

[LoveBWVVBR]

I am trying to find a fund company that will allow my DH's small company employer to open a plan with them. Presently, this company has 12 employees. At least 6 would participate in the 401k. The owner wants a 401k as well, but he says that they're too small and that it would be too expensive. I'm pretty sure that he's wrong, and I'm willing to do the legwork to find a plan that will take them. Does anyone think that Vanguard or T.Rowe Price would allow this company to open a 401k plan with them

BTW, DH and I already have very decent retirement accounts, so this isn't a make or break thing for us. I just think that it would be nice to have one (maybe a Roth 401k this time), and I think that everyone at the company would appreciate the option.

 

[ilovejack02]

Im not sure of how any of this works, but i worked for an eye dr's office and we only had 4 employees including dr. She had something set up for us with Merrilll Lynch. Its been years but i think she just had an IRA set up which is different than a 401k. She paid the management fees and then once a year dumped a % in our account. I think we had to be there a certain amount of time before we could join. Also her accountant took out a % of our paycheck and put it in the account for us also.

 

[Kanda]

I am the office manager of a company with 12 employees and we just signed up with a company through ADP Payroll Services, it's called ADP Total Source. It combines Workers comp., health insurance, flexible spending accounts, and 401(k) administration, as well as weekly payroll features, paying payroll taxes, quarterly filing, etc. By going with this company, we saved 15,000/year in health insurance premiums alone. It may be something to look into. PM me if you have any questions. I do not work for ADP or have anything to gain if you use them or not, it's just something that seems beneficial to small companies.

 

[Lisa_M]

My husband works at a company of about 15 employees. They have 401k through John Hancock.