Ubiquity Retirement + Savings has been an affordable provider of retirement solutions designed for small businesses, start-ups, and solopreneurs since 1999.
Customize a simple, affordable retirement plan for your small business in just a few clicks.
How many employees do you have?
A low-cost small business 401(k) is within your reach – if you know where to look.
First, look for a small business 401(k) provider who charges a transparent flat fee. You will not be penalized as your plan grows in size, but instead will pay a predictable charge. At Ubiquity Retirement + Savings, we are happy to assist you in finding the right low-cost small business 401(k) plan for your needs.
Small business 401(k) plan providers charge based on a number of pricing structures. Commonly, they will bill using Assets Under Management (AUM) fees combined with a Per-Participant charge. So, for instance, a company with $1 million in assets might pay $1,000 in annual administrative fees, plus a quarterly charge of $15 to $40 for each person in the plan. These fees are designed to compensate custodians and incentivize brokers to grow the plan, but they can really escalate the total cost of plan administration.
At Ubiquity, we charge NO AUM or per-participant fees. Your monthly fee, which can be as low as $90/month, covers:
How you structure your 401(k) plan can also impact the cost. Here are a few affordable options:
For most 401(k) plans, employer matching is completely optional, which can also save money on a new plan, though you will be subject to IRS nondiscrimination tests. Ubiquity’s compliance team will assist you in remaining informed as to employee contributions and letting you know if you might benefit from a Safe Harbor provision.
Ubiquity can recommend a flexible, low-cost partner if you’re not sure who can best manage your investments OR you are free to use whichever broker you’d prefer. Some employers may use a DIY brokerage or automated system to save money. Here you can try a default lineup based on long-term growth and your risk profile, with automatic rebalancing added, or you can customize your investments from over 30,000 funds.
Generally speaking, you’ll want a broker who can provide you with access to low-cost investments, rather than vehicles with notoriously high commission loads. The average expense ratio is 0.52%, so look for lower percentages if possible. Anything over 2% is considered high. Consider options like low-cost Vanguard index funds, which offer lower expense ratios and outperform many actively-managed funds.
Generous tax deductions make 401(k) plans more affordable for small businesses. You can write off the following:
Keep in mind that any matching contributions that fall below 25% of the employee’s annual compensation (or $305,000) can be deducted from federal, state, and payroll taxes.
Contact Ubiquity to get started on your low-cost small business 401(k). Since 1999, we have helped companies with 100 or fewer employees find affordable and effective ways to save for retirement.