The new 401(k) challenge. (salary-reduction savings plans)

The largely untapped small business sector has emerged as the hottest growth area in the 401(k) market. With only 11% of all small businesses providing employees with 401(k) plans, as compared to 78% for mid-sized businesses and 96% for large businesses, many plan vendors have set their eyes on winning small business customers. To do so, these vendors have opted to form alliances with community banks in order to reach their small-business clients.

Community banks are jumping into the lucrative small business 401(k) arena, often with third-party providers on their team. But can a c