Small business 401(k) plans offer unique benefits to both business owners and their employees who participate in the plan.

Many small business employers want to provide a 401(k) to help their employees but don’t think they have time or resources to manage a retirement plan, or don’t think they can afford one. However, with the budget-friendly, easy-to-use 401(k) solutions from Ubiquity Retirement + Savings™, small business owners can take advantage of the business tax benefits of a 401(k) plan and offer competitive retirement plan benefits for employees.

What is a small business 401(k)?

A small business 401(k) is a traditional retirement plan designed specifically for businesses with fewer than 100 employees. It allows employees to contribute a portion of their income to their retirement savings and may also offer employer contributions and tax benefits. Small business 401(k) plans are valuable for small business owners looking to attract and retain talented employees.

A 401(k) plan can be adopted by any employer other than a state or local unit of government. A small business 401(k) is defined as a 401(k) plan for a company with anywhere from one to 100 employees. At Ubiquity, we specialize in the retirement plan needs of small and growing businesses, including owner-only and start-up businesses.

If a business only employs the owner or only has employees who would not be eligible to participate in a plan, then our Single(k)® plan would be your best option.

Hear from Ubiquity’s valued customers:

Benefits of small business 401(k)

With the right 401(k) solution, both the business and its employees enjoy substantial business benefits, including:

  • Competitive retirement benefits to attract and retain employees
  • Efficient process for managing employee contributions through payroll deduction
  • Fewer employees working past their desired retirement date, which can impact morale and business costs
  • Tax deduction for plan expenses paid by the business owner
  • Tax credit for plan startup costs

Small business owners and employees can benefit personally from saving in a 401(k) plan, including:

  • Efficient, disciplined savings through automatic payroll deductions
  • Higher contribution amounts than permitted in SEP or SIMPLE IRA plans
  • Reduced taxable income through pre-tax salary contributions
  • Control over when taxes are paid on retirement assets (pre-tax versus post-tax Roth contributions)
  • Tax credits for some employees
  • Access to a broad range of investment options
  • Tax-deferred growth on investments while in the 401(k) plan
  • Option to take a loan from retirement savings
  • Ability to move assets to other retirement arrangements if changing jobs or retiring