Small Business 401(k)

A guide for small business owners to affordable and easy 401(k) plans. A Ubiquity Retirement + Savings™ 401(k) enables you to:

  • Attract and retain your workforce
  • Integrate payroll
  • Automate your plan administration
  • Receive up to $16,500 in tax credits over three years when you open a 401(k).*

    (*Up to $5,000 per year, plus an additional $500 per year for automatic enrollment for the first 3 years)

401(k) plans starting at $97/month

Keep what's yours with Ubiquity's affordable, flat fee 401(k) plans. Call 866.634.6116 or schedule a free consultation with a retirement expert to learn more.

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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:

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.
Talk to an expert today

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

Get a Fast, No-Obligation Quote Today

Answer a few simple questions to find the optimal plan for you and your small business.

How many employees do you have?
I am a sole proprietor
(just me/or my business partner/spouse)

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)

Additional $7,500

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.

Free guide to 401(k)

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.

    Maximum pre-tax contributions

    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.

    Plan start-up tax credit

    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:

    • Select plan features and services
    • Adopt a written plan
    • Select a menu of investments for the plan
    • Provide employee demographic information to service providers
    • Notify eligible employees of the terms of the plan

    Ubiquity manages all five steps for business owners online or with the help of a Retirement Plan Consultant.

    Start here to set up a plan
    Smiling businesswoman.
    “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! ”
    - Alan Drage, Geyser Equipment, LLC
    Read more testimonials

    Operating a 401(k) for small business owners

    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.

    Start here to set up a plan

    Depositing contributions

    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.

    Learn more

    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.

    Check out our cost-effective plan solutions

    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.

    We have experts available by phone or email

    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. 

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    44 Montgomery Street, Suite 300
    San Francisco, CA 94104