For many business owners, adopting a 401(k) plan starts with the best of intentions. You want to help your employees save for retirement. You want to remain competitive in the labor market. You want a benefit package that reflects the quality of the company you have built.
So, you adopt a plan, choose a provider, complete the setup process, and immediately go back to the demanding work of running your business.
Then, years go by.
The business changes. Headcount grows. Payroll evolves. Regulations shift, and new plan structures enter the marketplace. But the retirement plan? Often, it stays largely untouched.
At Suttle Crossland Wealth Advisors, we see this more often than many employers realize. It is rarely because business owners are neglectful or careless. It happens because retirement plans can quietly slide into “set it and forget it” territory. A 401(k) health check does not necessarily mean your plan is broken. Sometimes, it confirms your plan is in solid shape. Other times, it uncovers opportunities to improve employee outcomes, reduce friction, benchmark costs, or better align the plan with your evolving business goals.
Here are seven signs it may be time to take a closer look at your company’s retirement plan.
1. You Don’t Really Know What Your Plan Costs
This is one of the most common issues we encounter when speaking with business owners. If you ask a CEO what they pay for payroll processing, rent, or insurance, they usually know the answer immediately. But ask what their retirement plan costs all-in, and the conversation often gets fuzzy.
401(k) fees can come from multiple sources, including:
- Recordkeeping fees
- Advisory and administration fees
- Investment expenses (expense ratios)
- Compliance costs and payroll integration charges
- Participant-level fees
Some are paid directly by the employer, while others are paid by participants or embedded inside the investment options. The issue is not necessarily that fees exist—quality services have value. The real question is whether the total cost is understood, benchmarked, and appropriate for the services being delivered.
A periodic review can help answer critical questions: Are total plan costs reasonable relative to comparable plans? Are employees paying unnecessary expenses? Has company growth created opportunities for better economies of scale? Cost transparency matters, and a fiduciary advisor can help illuminate exactly what you are paying for.
2. Participation Rates and Employee Engagement Feel Weak
Your retirement plan may technically exist, but is it actually being used effectively? Many employers quietly struggle with low participation, low deferral rates, or limited employee engagement.
While employee behavior is never entirely within an employer’s control, plan design and communication have a massive impact. Features like automatic enrollment, automatic escalation, and streamlined onboarding can materially influence savings behavior. Equally important, employees need retirement education delivered in plain English, not industry jargon. A strong retirement plan should not simply satisfy a compliance requirement—it should actively help employees make progress toward financial security.
3. Your Investment Menu Hasn’t Been Reviewed in Years
Markets evolve, investment options change, and workforce demographics shift. Yet, many employers are not regularly reviewing whether their investment lineup still makes sense.
Prudent oversight involves a structured, documented review process. You should regularly evaluate:
- Does the investment lineup provide diversified, low-cost choices?
- Have any funds materially drifted from their stated objectives?
- Are the default investment selections (like Target Date Funds) still appropriate?
- Has your investment committee documented its review process?
Employers sponsoring retirement plans generally carry important fiduciary oversight obligations. Simply selecting investments once and never revisiting them is not a prudent long-term governance approach.
4. Your HR or Finance Team Is Carrying Too Much Administrative Burden
A retirement plan should support your business, not create operational headaches. Yet many companies find themselves dealing with recurring pain points, such as manual file uploads, eligibility tracking complexity, late contribution concerns, or audit coordination stress.
A process that felt manageable with 12 employees may feel overwhelming with 60 employees. In some organizations, a single HR professional becomes the unofficial retirement plan specialist by default. Periodic reviews can help identify opportunities to simplify administration, improve workflows, and enhance payroll integration using newer technology and service models.
5. You’re Unclear About Your Fiduciary Responsibilities
If the word “fiduciary” makes you slightly uncomfortable, you are not alone. Many employers understand that retirement plans involve fiduciary considerations, but they are less certain about what that actually means in practice.
Depending on the plan structure, employers may retain varying degrees of fiduciary responsibility related to plan oversight, service provider selection, and investment monitoring. Good governance is not about creating bureaucracy; it is about creating a repeatable process that demonstrates thoughtful oversight. Employers should seek clarity on who is responsible for investment oversight and ensure that provider evaluations and committee meetings are well-documented.
6. Your Business Has Changed, but Your Plan Hasn’t
Businesses evolve, and your retirement plan must evolve with them. You may have experienced rapid employee growth, ownership changes, or a desire to improve executive retirement savings.
Furthermore, the regulatory landscape shifts constantly. For instance, the SECURE 2.0 Act introduced several new rules that took effect in 2026. For tax year 2026, the standard 401(k) contribution limit was adjusted to $24,500. The catch-up contribution limit for employees aged 50 and over sits at $8,000, bringing their total potential contribution to $32,500. Additionally, SECURE 2.0 introduced a higher “super” catch-up limit of $11,250 for employees aged 60 to 63.
Crucially, beginning in 2026, employees aged 50 and older who earned more than $150,000 in the prior year are now required to make their catch-up contributions on a Roth (after-tax) basis. If your plan does not currently offer a Roth option, you will need to amend it, or your higher-earning employees will not be able to make catch-up contributions at all.
A plan that worked perfectly for a smaller organization a few years ago may not be compliant or optimized for your business today.
7. Your Retirement Plan May Be Affecting Recruitment and Retention
Benefits matter. In a competitive labor environment, employees increasingly look at the broader compensation package. A poorly communicated, outdated, or difficult-to-use plan can create avoidable friction when trying to attract top talent.
You do not necessarily need the most elaborate or expensive plan in your industry. However, offering a streamlined, understandable retirement benefit with a thoughtful employer match can support company culture, loyalty, and employee confidence.
A Health Check Does Not Mean Starting Over
One concern we sometimes hear from employers is: “If we review the plan, are we opening a giant can of worms?”
Not necessarily. A retirement plan review does not automatically lead to major disruption or provider changes. You may confirm your current arrangement remains competitive, or you may identify a handful of targeted, easy-to-implement improvements. The point of a health check is not to manufacture problems; it is to create visibility and peace of mind.
At Suttle Crossland Wealth Advisors, we work with employers and business owners who want a thoughtful, practical perspective on retirement plan strategy, tax efficiency, and fiduciary governance. If you recognize any of these red flags and want to understand how your current plan stacks up, contact our team today for a second opinion.