A guide for small business owners to affordable and easy 401(k) plans. A Ubiquity Retirement + Savings™ 401(k) enables you to:
(*Up to $5,000 per year, plus an additional $500 per year for automatic enrollment for the first 3 years)
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.
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 your best option.
With the right 401(k) solution, both the business and its employees enjoy substantial business benefits, including:
Small business owners along with their employees, can benefit personally from saving in a 401(k) plan, including:
Not too familiar with 401(k) plans?
No problem – we’ll give you the lowdown.
Download Ubiquity’s Guide to Small Business 401(k) Planning and learn how a 401(k) can help lower your taxable income at a low fee and help you and your employees achieve greater financial security.
After almost two decades helping small business owners overcome their fears related to saving for retirement, we understand what’s holding you back, and we’re always here to help. The Ubiquity 401(k) Guide can help you better understand your small business 401(k) options, and help you find the right small business retirement plan.
Our retirement planning experts will work closely with you to develop a retirement strategy that meets your needs and delivers beyond what you may have thought possible.
Business owners who are looking to maximize their savings can contribute a significant amount to a 401(k) each year. Plan contribution limits for owners and high earners may be reduced if other employees are not actively saving in the plan. Ubiquity retirement plan consultants work with each business owner to identify the optimum plan design and resources to meet their individual needs.
Salary deferral contribution + catch-up contribution if age 50 or older
$27,000 maximum contribution
Tax deductible as a business expense and lowers owner’s or employee’s level of taxable income
Owner and highly paid employees may have to limit contributions if other employees are saving at low rates unless a safe harbor 401(k) plan provision is used
Employer matching or profit sharing contributions
Up to 25% of eligible compensation
Tax deductible as a business expense
Tax deductible as a business expense
Contribution amount can vary year to year (unless a Safe Harbor 401(k) plan)
Employer contributions must be nondiscriminatory
Owner can set employee eligibility requirements (e.g., must be age 21) and can apply a vesting schedule (unless a Safe Harbor 401(k) plan)
100% of income up to $61,000 ($67,500 if eligible for age 50 catch-up)
Maximum contribution limit applies to each participant
Business owners may be able to claim a tax credit for the administrative expenses of establishing their first retirement plan. The tax credit is equal to 50% of eligible start-up costs, with a maximum of $16,500 in tax credits (up to $5,000 per year for the first 3 years of the plan, plus an additional $500 per year if you include auto-enrollment).
How to set up a small business 401(k) plan
Although each 401(k) provider will have its documentation and procedures for establishing a 401(k) plan, most business owners will need to:
Ubiquity manages all five steps for business owners online or with the help of a Retirement Plan Consultant.
“I am a new plan sponsor for my employer with Ubiquity. The friendliness of customer support was outstanding. So far, I am very impressed with Ubiquity! ”
Once a 401(k) is set up, the business owner will work with the chosen service provider to make sure the plan operates according to the terms of the plan document and in compliance with other IRS tax rules that apply to 401(k) plans.
A business owner is responsible for:
Ubiquity helps small business owners handle all of these plan maintenance steps. Start here to set up a plan.
One of the most important responsibilities of a business owner operating a 401(k) plan is to deposit plan contributions that are withheld from employees’ paychecks.
Business owners who do not make timely deposits may be subject to IRS and Department of Labor DOL) penalties. Small businesses (those with fewer than 100 employees) need to meet deposit requirements within seven days following payroll.
Contributions made by the business owner (e.g., matching, profit sharing) must be deposited by the business’s federal income tax return due date, including extensions.
If you are a small business owner and need a 401(k) plan for yourself and your company, only Ubiquity offers flat-fee plans plus free expert advice.
We will fully customize your 401(k) to meet the specific needs of your small business.
Setting up a 401(k) can be complicated. Only Ubiquity gives small business owners access to 401(k) experts in addition to industry leading low flat-fees. Each sales expert has over a decade of experience assisting business owners in 401(k) plan design. Take advantage of this free benefit.