Small Business Retirement Plan Options

An affordable and easy small business 401(k) plan from Ubiquity Retirement + Savings enables you to:

  • Attract and retain talented employees
  • Streamline and integrate payroll
  • Automate your plan administration
  • Qualify for up to $16,500 in tax credits over three years when you open a 401(k)1
Uncomplicated Small Business 401(k) Plans

Keep what's yours with Ubiquity's flat-fee 401(k) plans.

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Small Business Retirement Plan Options

For growing businesses, ensuring the long-term well-being of your employees is not just a gesture —it’s a strategic imperative. Retirement plans for employees of small business enterprises serve as powerful instruments, enabling employees to allot a fraction of their earnings for their golden years. Here’s why introducing small business retirement plans can be a game-changer for your enterprise:

Attract and Retain Talented Employees

In today’s competitive job market, a comprehensive financial services package is essential for attracting and retaining top talent. Workers frequently weigh the availability of retirement plans small business owners can offer, like the 401(k), when considering job offers or deciding to stay with a company. Offering robust small business retirement plan options conveys that your business prioritizes its long-term success. Doing so bolsters your company’s reputation as a caring employer, which can markedly boost employee loyalty and motivation.

Integrate Payroll

Blending a retirement plan with your small business can dovetail perfectly with your payroll system. This congruence streamlines processes, auto-deducting contributions and ensuring their accurate allocation. Integration spares small business owner retirement plans from tedious manual entries, curtailing mistakes and conserving administrative time.

Automate Your Plan Administration

Leverage technology to automate your retirement plan options for small businesses’ administration, ensuring precision and efficiency. This technological embrace supervises contributions, checks compliance, reporting, and more with minimal manual oversight for small business retirement plans. Companies that provide this service guarantee that plans adhere to regulations seamlessly and ensure participant security.

Tax Advantages for Business Owners

Businesses can gain appreciably from tax credits by initiating a 401(k) plan. The SECURE Act, instituted in December 2019, amplifies tax credits for companies launching a new 401(k) plan, with small business retirement plan options potentially receiving a startup credit of up to $5,000. Additionally, when you compare small business retirement plans, companies can claim another tax break of $500 for three years by adding an automatic contribution feature. Beyond credits, matching or profit-sharing contributions made by employers to 401(k) accounts can qualify as business expenses, rendering them tax deductible and further reducing the company’s tax liability.

Increase Company Deductions

Businesses gain tax deductions for their contributions to employee retirement plans. This can lead to substantial savings, enabling companies to channel those funds into business operations or other strategic endeavors, ensuring a steady income.

Boost Employee Productivity and Morale

A financially secure employee is often a more focused, enthusiastic, and productive one. Knowing their retirement is secure, employees can zero in on their roles, enhancing company output and fostering a friendly work atmosphere.

Competitive Edge in Recruitment

Differing types of retirement plans for small business endeavors can be the distinguishing factor when talented candidates choose between job offers. This retirement benefit is a testament to your commitment to their future, making your establishment a preferred workplace. Providing small business retirement plans will also elevate your company profile with future employees, reinforcing your status as a desired employer.

Personal Retirement Security for Business Owners

A 401(k) isn’t just an employee benefit for business owners—it’s a personal retirement safety net. By investing, you secure your retirement, ensuring your entrepreneurial endeavors reward you in your later years.

Mitigate Employee Turnover

Constant staff turnover is costly and destabilizing. Introducing a 401(k) with vesting periods incentivizes employees to commit long-term, preserving institutional knowledge and fostering a seasoned workforce.

Flexibility in Contribution Structures

401(k) plans grant employers the discretion in deciding contribution amounts for individuals. Whether it’s a matching system or discretionary contributions, you can curate a plan congruent with your main business’s fiscal health and goals.

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.

Retirement plans for small businesses can be easy to administer and maintain. Once the plan is set up, the primary responsibilities of the business owner are depositing plan contributions and providing plan notices to employees.

Retirement plans also offer tax benefits to the business, including the ability to deduct contributions, and for certain eligible employers, take a tax credit up to $5,000 per year for three years. A retirement plan also provides tax benefits to those who participate in the plan. Contributions and investment earnings are not taxed until taken out of the plan.

A 401(k) plan can also allow after-tax Roth contributions, which will be taxable to you when you contribute them to your plan account but are tax-free if not withdrawn until you retire. Savers credits are also available for those who qualify.

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2024 401(k) Contribution Limits

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)

$23,000

Maximum employee elective contribution (age 50 and older)

Additional $7,500

Maximum employee elective deferral plus catch-up contribution (age 50 or older)

$30,500

Defined contribution maximum limit, employee + employer (age 49 or younger)

$69,000

Defined contribution maximum limit (age 50 or older), all sources + catch-up

$76,500

Highly compensated employees’ threshold for nondiscrimination testing

$155,000

Key employee officer compensation threshold

$220,000

Annual compensation limit for HCEs and key employees

$345,000

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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.

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Small business retirement plans – know your options

Providing a retirement plan is one of the most effective ways business owners can help themselves and their employees prepare for retirement.

One common myth among business owners is that offering a retirement plan to employees is not affordable. However, small business plans do not have to be complicated or expensive. Three types of retirement plans are popular with small businesses: SEP, SIMPLE IRA, and 401(k). Understand your options and the benefits available under each type of plan, and you will find the one that is the right fit for your company.

Types of Small Business Retirement Plans:

SEP Plan:

A Simplified Employee Pension (SEP) plan is an IRA-based retirement plan funded only with employer contributions. The employer may decide from year-to-year whether to make contributions as well as an amount to contribute. SEP contributions are deposited in an eligible employee’s traditional IRA. A SEP plan could be suitable for both a self-employed business owner and an employer with employees.

SIMPLE IRA Plan

A Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA plan is another IRA-based retirement plan option for small businesses. Only businesses with 100 or fewer employees may establish a SIMPLE IRA plan. A SIMPLE plan is like a 401(k) plan in that employees can defer a portion of their salary.

Unlike a 401(k) plan which requires complex nondiscrimination testing, SIMPLE IRA plans have no testing requirements.

In exchange for the more straightforward administration requirements, SIMPLE IRA plans have lower contribution limits than 401(k) plans and require the employer to make a matching or nonelective contribution for eligible employees.

A SIMPLE IRA plan would not be appropriate for a self-employed individual with no employees.

Small Business 401(k) Plan

A 401(k) is a savings vehicle established by a business to help the business owner and employees save for retirement. Employees can defer a portion of their salary into the plan, and many businesses choose to match a portion of the employees’ contributions, helping retirement savings grow even faster.

A 401(k) plan provides all the same tax advantages (tax deductions, tax-deferred earnings, and tax-credits) as the other types of plans, but a 401(k) plan also offers unique benefits:

  • Higher contributions limits than SEP or SIMPLE IRA plans
  • Option to make Roth (after-tax) contributions
  • Option to take a loan from retirement savings
  • Typically, a broader range of investment options

With the budget-friendly, easy-to-use 401(k) solutions from Ubiquity Retirement + Savings, small business owners can take advantage of all the benefits of a 401(k) plan, including our Single(k)® plan for businesses that employ only the owners (and spouses) or only employees who wouldn’t be eligible to participate in the plan.

 

1 Please refer to Important Information for details.

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© 2024 Ubiquity Retirement + Savings
44 Montgomery Street, Suite 300
San Francisco, CA 94104

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Talk to Sales
Schedule a Free Consultation

Contact Support
Visit our Help Center
support@myubiquity.com
Monday–Friday
6am–5pm PT / 9am–8pm ET

© 2024 Ubiquity Retirement + Savings
44 Montgomery Street, Suite 300
San Francisco, CA 94104