*Eligible employers may be able to claim a tax credit of up to $5,000, for three years, for ordinary and necessary costs of starting a 401(k) plan. IRS’ qualifying factors are: you had 100 or fewer employees who received at least $5,000 in compensation from you in the preceding year, you had at least one participant who was a non-highly compensated employee (NHCE) and in the three tax years before the first year you’re eligible for the credit, your employees were substantially the same employees who received contributions or accrued benefits in another plan sponsored by you, a member of a controlled group that includes you, or a predecessor of either. Those plans with automatic enrollment can claim a tax credit of $500 per year for a 3 year taxable period.
¹ This calculation assumes the following scenario: Jennifer and Joshua each have retirement plans that they contribute $6,000 to every year. Jennifer’s plan is with Ubiquity Retirement + Savings and her fees are flat $6/month. Joshua’s plan is with CalSavers and his annual asset based % fee is 0.825%.It grows an average of 10% every year. At the end of 30 years, Jennifer’s account is worth $1,088,436, and she has paid fees of $16,146 with her Ubiquity 401(k). Joshua’s account is only worth $948,897 and he has paid fees of $72,362.Ubiquity’s flat fees could help you end up with $139,539 more over 30 years vs. CalSavers IRA¹.
² Information is based on Google reviews as of September 30, 2022.
³ This percentage is based on surveys sent by Ubiquity Retirement + Savings and completed by clients of Ubiquity Retirement + Savings using specific product types.
Avoid additional penalties.
