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)
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 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.
With the right 401(k) solution, both the business and its employees enjoy substantial business benefits, including:
Or schedule a free consultation with a retirement specialist.
One of the most important benefits of a 401(k) is the large amount that can be contributed each year, tax-free.
Maximum employee elective contribution (age 49 and younger)
Maximum employee elective contribution (age 50 and older)
Maximum employee elective deferral plus catch-up contribution (age 50 or older)
Defined contribution maximum limit, employee + employer (age 49 or younger)
Defined contribution maximum limit (age 50 or older), all sources + catch-up
Highly compensated employees’ threshold for nondiscrimination testing
Key employee officer compensation threshold
Annual compensation limit for HCEs and key employees
Not too familiar with 401(k) plans?
No problem – we’ll give you the lowdown.
No confusing language or too much financial jargon. Just a clear, concise, simple explanation.
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.
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).
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) doesn’t have to 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.
Ubiquity is not a registered investment advisor, and the information provided herein should not be considered legal or tax advice. We recommend consulting with your financial planner, attorney, and/or tax advisor for personalized advice.
Decimal, Inc. charges flat fees for recordkeeping and administrative services. Third-party service providers may assess asset-based fees to customers. We advise Plan Sponsors to review all service agreements with providers, such as investment advisors, custodians, and broker-dealers, to evaluate the total cost of the plan.
Google ratings for Ubiquity Retirement + Savings products and services are determined by customer reviews. The rating calculation methodology is available here. The rates shown were last updated on January 12, 2023, and are based on reviews from 2014 to 2023.
Decimal, Inc. conducted an evaluation of four small-business 401(k) providers in the marketplace by analyzing independent customer reviews on Google, Trustpilot, and the Better Business Bureau, as reported by unaffiliated contributors on or before September 30, 2022, with a revaluation date of January 12, 2023. The evaluation resulted in a higher score for our company compared to the other providers. We strive to provide excellent service to our customers and appreciate their feedback.
Eligible employers can receive a tax credit of up to $5,000 over three years for starting a 401(k) plan, subject to IRS requirements. Employers with 50 or fewer employees qualify for a 100% tax credit, while those with 100-50 employees can receive a 50% tax credit. Additional eligibility criteria include having at least one non-highly compensated employee, an employee who received at least $5,000 in compensation in the preceding year and having substantially the same employees receiving contributions or benefits from another plan sponsored by the employer, a member of a controlled group, or a predecessor within the three tax years prior to becoming eligible. Employers with automatic enrollment plans can receive an extra tax credit of $500 per year for a three-year taxable period.
Employers with 50 or fewer employees can receive a tax credit for contributing to their employees’ retirement plans. The credit is a percentage of the amount contributed by the employer, up to a per-employee cap of $1,000. The credit percentage is reduced over five years, with 100% in the first and second years, 75% in the third year, 50% in the fourth year, and 25% in the fifth year. No credit for subsequent tax years, thereafter.