401(k) vs. State-Mandated Plans: Understanding What's Right for Your Business

5 min read

June 27, 2025

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Key Takeaways

State-run retirement plans give small business owners a compliance option, but they differ from 401(k) plans in cost, plan control, and overall flexibility.
Reviewing the side-by-side differences in plan features helps small business owners decide whether a state-mandated plan or a private 401(k) is the better fit for their team.

More state are rolling out decisions for retirement state mandates, and that means new choices for small business owners. But how do state-run plans really stack up against 401(k)s? Here's everything you need to know–from costs to plan control– so you can make the most informed decision.

See the Differences Side-by-Side:

recommended resource

Ubiquity’s Guide to Small Business 401(k) Plans

Tailored for small businesses, this guide helps take the complexities out of retirement planning with actionable tips and strategies, and future-thinking insights.

author

Connie Lee

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Overview

More state are rolling out decisions for retirement state mandates, and that means new choices for small business owners. But how do state-run plans really stack up against 401(k)s? Here's everything you need to know–from costs to plan control– so you can make the most informed decision.

See the Differences Side-by-Side:

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Overview

More state are rolling out decisions for retirement state mandates, and that means new choices for small business owners. But how do state-run plans really stack up against 401(k)s? Here's everything you need to know–from costs to plan control– so you can make the most informed decision.

See the Differences Side-by-Side:

Get your guide

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Your submission has been received! Now you can download the guide by clicking the button below.

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Relevant resources

View all articles

The Small Business Owner’s Guide to State-Mandated Retirement Plans

How to Open a 401(k) for Your Small Business: A Step-by-Step Guide

State-Mandated Retirement Plans for Small Businesses

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