By Justin Gaulin
Regional Vice President, ABA Retirement Funds Program
For many law firms, the 401(k) plan remains a main focal point of employee benefits. It deserves a higher level of focus.
At a time when firms are managing competition for talent, shifting compensation expectations, and succession planning, retirement plan design belongs on the leadership agenda. A well-designed 401(k) can do more than provide a benefit. It can help align partner objectives with the needs of associates and staff, support broader business goals, and reinforce the firm’s long-term operating strategy.
A Talent and Retention Lever
From a workforce standpoint, a 401(k) plan can strengthen a firm’s ability to attract and retain talent, particularly in an environment where compensation expectations and financial planning increasingly shape career decisions.
Law firms operate within distinctive financial environments, often shaped by fluctuating revenue cycles and multigenerational teams. In that context, flexibility matters. A modern 401(k) can allow participants to choose between pre-tax and Roth contributions, or a combination of both, based on income and tax considerations.
Plan design choices can also influence participant behavior and outcomes. Features such as automatic enrollment, contribution escalation, student loan matching contributions, and employer profit sharing and/or matching contributions can increase participation and help improve long-term savings across the workforce.
A Financial and Operating Lever
From the firm’s perspective, a 401(k) plan should not be viewed solely as a benefits expense. It can also serve as a financial and operating lever that supports broader compensation, tax, and workforce objectives.
Employer contributions, whether through matching or profit sharing, may create tax-deductible opportunities while advancing overall compensation strategy. Thoughtful plan design can also help firms manage payroll-related costs and align benefits with performance, profitability, and partner goals.
Just as importantly, a well-structured plan can provide continuity as the firm navigates growth, lateral hiring, and leadership transition over time.
The Role of an Experienced Service Provider
Given the complexity of retirement plans and the regulatory landscape surrounding them, many firms rely on experienced providers to support both plan design and ongoing administration.
A strong provider should help evaluate plan design, support fiduciary oversight, benchmark competitiveness, and deliver participant education in a clear, practical way.
The ABA Retirement Funds Program was established in 1963 to provide retirement solutions designed exclusively for the legal community. Today, the Program continues to support law firms and legal organizations with flexible plan design, fiduciary oversight, and participant-focused resources intended to help improve retirement outcomes. Contact us today to see how we can help position your firm for success.
Justin Gaulin is a Regional Vice President with the ABA Retirement Funds Program, working exclusively with law firms to simplify retirement planning and fiduciary decision making.
With 14 years of retirement industry experience, Justin is known for his consultative, long-term approach and focuses on making complex decisions easier for firm leaders and small and solo practitioners.
The ABA Retirement Funds Program has been providing affordable retirement plans to the legal community for over 60 years. It is organized as an Illinois not-for-profit corporation by the American Bar Association and is dedicated to providing retirement services exclusively to the legal community. It currently services nearly 3,900 law firm retirement plans and has approximately $7.7 billion in assets (12/31/2024).
Registered representative of and securities offered through Voya Financial Partners, LLC (member SIPC).
This material has been provided for educational purposes only for sponsors and prospective sponsors. It was created to provide accurate and reliable information on the subjects covered and should not be considered tax, legal, or investment advice. Each plan must consider the appropriateness of the investments and plan services offered to its participants.
Voya Financial Partners is a member of the Voya family of companies (“Voya”). Voya and the ABA Retirement Funds are separate, unaffiliated entities and are not responsible for one another’s products and services.
