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Don’t miss out on these benefits:
Support your employees in building their future when you start a 401(k) for small business.
SurePayroll, a Paychex company, can guide you in setting up a 401(k) built for you.
Our competitively priced, quality 401(k) retirement plan can help you retain employees and improve satisfaction. Set up a 401(k) plan for your employees with SurePayroll today.
Every state is different when it comes to retirement plan mandates. If you have employees working in different states, you may need to consider each state’s requirements.
Not all retirement plans are created equal. A 401(k) plan from a provider like SurePayroll may be a better way to save for both you and your employees. A state-facilitated IRA has lower employee contribution limits, more administration demands, and is not eligible for SECURE Act 2.0 small business 401(k) tax credits.
Whether you have one employee or many, SurePayroll can guide you in finding the right retirement plan for your small business.
Comparison of Common Small Business Retirement Plans
Defined contribution
Employee; employer contributions are optional
Yes, within deferral limit
Employer contributions are optional
Yes
* Maximum compensation limit is $330,000 in 2023
Employer / Employee Combined:
Up to the lesser of 100% of compensation or $69,000 ($76,500 age 50 and older)
Note: For all plan types, the plan sponsor may exclude union employees
Employers can select any of the following participant eligibility requirements:
Immediate on employee contributions; Employer contributions can be subject to vesting schedule
Defined contribution
Employee and employer
Yes, within deferral limit
or
Yes
* Maximum compensation limit is $330,000 in 2023
Employer / Employee Combined:
Up to the lesser of 100% of compensation or $69,000 ($76,500 age 50 and older)
Note: For all plan types, the plan sponsor may exclude union employees
Employers can select any of the following participant eligibility requirements:
Immediate on employee and most safe harbor contributions; Employer contributions can be subject to vesting schedule
IRA based
Employee and employer
No
or
No
* Maximum compensation limit is $330,000 in 2023
Employee: $16,000 (if 50 years or older, an additional $3,500 allowed) Employer: Must make matching contributions up to 3% of employee compensation or contribute 2% of total eligible employee compensation*
Note: For all plan types, the plan sponsor may exclude union employees
Participants must:
and
Immediate
Retirement services cover the full range of services needed over a plan’s life, particularly for a business or organization managing multiple plans. These can include plan design, investment, conversion, setup, enrollment, administration, and compliance testing.
Yes, a small business can have a 401(k). Offering a 401(k) retirement plan is a great way for small businesses to attract and retain talent.
Small businesses with one employee to many can offer 401(k) retirement plans - SurePayroll is great for companies with one employee to 100.
A 401(k) retirement plan is a type of retirement account that allows employees to contribute a defined amount of pretax or Roth (after tax) dollars each pay period. Employers also can match part or all the employee's tax-deferred retirement contributions, or provide a profit-sharing contribution, although those contributions are not required. A 401(k) plan is a great option for entrepreneurs and small businesses, particularly since pension plans are no longer common and the future of Social Security benefits is unpredictable.
Start saving with Sure401k® now and contact a small business retirement plan specialist at 866-497-2028.
Employers most commonly use 401(k) plans because of their flexible plan designs and the ability to save much more than other retirement plans such as IRAs.
Sure401k® offers popular 401(k) plan options at affordable prices so you and your employees save as much as possible.
Traditional 401(k) plan allows employees to save for their retirement through payroll-deducted contributions while providing employers the option to make additional contributions to their employees' 401(k) retirement accounts. However, due to required annual non-discrimination testing—developed to ensure 401(k) plans do not favor owners or highly compensated employees (HCE) more than other employees—HCEs and business owners may have limits imposed on their annual contribution amounts.
Safe Harbor 401(k) plans provide the same features as a traditional 401(k) plan and bypasses annual non-discrimination testing. A Safe Harbor plan requires minimum annual employer contributions using either a matching formula or a fixed 3% annual contribution.
Solo(k) gives owner-only and family-only businesses the ability to make the maximum allowable contributions to a small business retirement plan while providing access to accumulated balances through a loan feature. Business owners and their spouses receive the same advantages of a traditional 401(k) plan, including pre-tax and Roth contributions, and higher annual contribution limits than allowed in a SEP-IRA or SIMPLE plan.
There are pros and cons to each type of plan. Businesses tend to use 401(k) plans because they are flexible and enable employees to save more. A small business retirement plan specialist can review the different plan descriptions and help you decide which one is best for your business. Contact us today at 866-497-2028 today.
Some typical 401(k) management fees are:
Small businesses with employees from one to 100 trust SurePayroll to help them deliver 401(k) benefits to their employees. We can help you find the right retirement plan services that not only fit your business, but also help you build and retain a high-quality workforce.
All employees, including small business owners, may defer up to $22,500 per year (or $30,000 per year, if age 50 or older) based on 2023 limits. You’ll find that Sure401k® offers deferral 401(k) plan options so your employees can build their retirement savings.
Pre-tax Deferral is a contribution that is made from gross pay prior to tax deductions. The contributions grow tax-free. The accumulated 401(k) plan balance is taxed upon distribution at the individual's then-current income tax rate.
Pre-tax Deferral is a contribution that is made from gross pay prior to tax deductions. The contributions grow tax-free. The accumulated 401(k) plan balance is taxed upon distribution at the individual's then-current income tax rate.
Catch-Up Contributions are optional for individuals aged 50 or older so they may defer up to an additional $7,500 to their 401(k) retirement account, for a total allowable deferral of $30,000 in 2023.
Explore your 401(k) retirement plan deferral options now and contact a small business retirement plan specialist at 866-497-2028.
Small business owners can easily make contributions to their employees' 401(k) accounts with a variety of simple options.
Fixed Company Match enables you to match employees’ 401(k) plan contributions at a fixed rate for a simple, predictable way to help them grow their retirement funds. This option is the most popular matching method for small businesses.
Discretionary Company Match allows you to match a percentage of each employee's deferral, giving the freedom to offer, raise or lower the match percentage annually.
Discretionary Profit Sharing lets you make one-time or periodic contributions to employees' 401(k) accounts, even if they're not actively contributing themselves. We'll prepare estimated profit-sharing calculations upon your request.
For all 401(k) plans, the maximum contribution in 2023 for any one person is limited by law to the lesser of $66,000 or 100% of compensation. If someone is making the full catch-up contribution, the limit increases to $73,500.
A small business interested in setting up a 401(k) retirement plan can get started with a simple 15-to-20-minute meeting with a SurePayroll retirement plan specialist. This will help you determine which type of 401(k) retirement plan is the best fit for you and your business. From there, we can set up the 401(k) retirement plan for your business in less than 15 minutes.
Yes, an LLC can have a 401(k) retirement plan. Any type of business can start a 401(k) plan, including corporations, partnerships, sole proprietors, and LLCs.
1 Setting Every Community Up for Retirement Act of 2019. New plans may be eligible for up to $5,000 a year over three years and an auto-enrollment credit of $500 a year over three years, for a total tax credit of up to $16,500
2 SECURE Act 2.0. The employer contribution credit is generally a percentage of the amount contributed by the employer, up to $1,000 per employee. This additional credit is limited to employers with 50 or fewer employees and reduced for employers with between 51 and 100 employees. The credit phases out over 5 years.
3 By number of plans in the U.S., PLANSPONSOR Recordkeeping Survey, 2022. Based on results for Paychex. SurePayroll is a wholly-owned subsidiary of Paychex.
4 https://www.federalreserve.gov/publications/2022-economic-well-being-of-us-households-in-2021-retirement.htm
5 Non-Profit Transamerica Center for Retirement Studies; 21st Annual Transamerica Retirement Survey of Workers; August 2021 – Usage rights on file
6 https://www.ssa.gov/news/press/releases/2022/#6-2022-1
7 2020 Small Business Employee Study December 2020; A joint study conducted by ClearlyRated and Paychex
8 December 2022 Small Business Retirement: Investing in Your Future, by SCORE. – Usage rights on file.
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