Sure401k®

Simple, valuable small business retirement plans

Employer-sponsored 401(k) plans can offer small businesses a powerful tool to recruit and retain top talent.

401(k) retirement plans built for small business

Efficient

We can help you find a plan that provides your employees an opportunity to achieve their retirement goals— while also providing potential tax credits for your business.

Transparent

Clear pricing, with no hidden fees or charges.

Flexible

Choose from a pre-selected investment menu or create your own investment line-up from 1,600 investment options.

Easy

Access your small business 401(k) plan anytime, anywhere with our mobile app and online platform.

Start a powerful retirement plan

Employer-sponsored 401(k) plans can offer small businesses a powerful tool to recruit and retain top talent. Thanks to tax breaks made available by the SECURE Act 2.01, now is a great time to offer retirement benefits to the people who help grow your business.ping your employees work towards their retirement goals could provide your business with up to $16,5002 in potential tax credits—possibly more if you offer matching or profit-sharing contributions.

SurePayroll® By Paychex can help simplify the process of starting a retirement plan.

“I needed a simple and affordable payroll solution that I could manage. SurePayroll works, and 401(k) integration was a breeze.”

Brian
SurePayroll Customer

Choosing the right retirement plan for small business

See how Sure401(k) options compare to other small business plans like SIMPLE and SEP IRAs.

Features
Basic Plan Type

Defined contribution

Who Can Contribute

Employee; employer contributions optional

Employee Contributions
  • $23,500 salary deferral allowed
  • Additional $7,500 catch-up contribution (age 50 and older)
  • Contributions may be pre-tax or post-tax (Roth)
Roth Contributions

Yes, within deferral limit

Employer Contributions

Employer contributions are optional

Discretionary Profit Sharing

Yes

Maximum Annual Contribution Per Participant

* Maximum compensation limit is $350,000 in 2025

Employer/Employee Combined: Up to the lesser of 100% of compensation or $69,000 ($76,500 age 50 and older in 2024

Employee Eligibility

Note: For all plan types, the plan sponsor may exclude union employees

Employers can select one or more of the following participant eligibility requirements:

  • Complete up to one year of service
  • Complete up to 1,000 hours of work
  • Be at least 21 years of age
Minimum Vesting

Immediate on employee contributions; Employer contributions can be subject to vesting schedule

Features
Basic Plan Type

Defined contribution

Who Can Contribute

Employee and employer

Employee Contributions
  • $23,500 salary deferral allowed
  • Additional $7,500 catch-up contribution (age 50 and older)
  • Contributions may be pre-tax or post-tax (Roth)
Roth Contributions

Yes, within deferral limit

Employer Contributions
  • Employer contributions are required
  • Mandatory minimum 4% employer match (e.g., 100% up to 3%, 50% on the next 2%)

or

  • 3% non-elective employer contribution (Note: 4% for late amendment)
  • Match formula can be enhanced (Note: Match can be applied to any deferral up to 6%)
Discretionary Profit Sharing

Yes

Maximum Annual Contribution Per Participant

* Maximum compensation limit is $350,000 in 2025

Employer/Employee Combined: Up to the lesser of 100% of compensation or $69,000 ($76,500 age 50 and older in 2024

Employee Eligibility

Note: For all plan types, the plan sponsor may exclude union employees

Employers can select one or more of the following participant eligibility requirements:

  • Complete up to one year of service
  • Complete up to 1,000 hours of work
  • Be at least 21 years of age
Minimum Vesting

Immediate on employee and most safe harbor contributions; Employer contributions can be subject to vesting schedule

Features
Basic Plan Type

IRA based

Who Can Contribute

Employee and employer

Employee Contributions
  • $16,000 salary deferral allowed
  • Additional $3,500 catch-up contribution (age 50 and older)
  • Contributions may be pre-tax or post-tax (Roth)
  • Limits are increased by 10% for employers with fewer than 26 employees
Roth Contributions

Yes, within deferral limit

Employer Contributions
  • Mandatory 3% employer match—three out of five years (1% minimum required for other two years)

or

  • 2% non-elective employer contribution
  • SECURE Act 2.0 also allows certain additional employer contributions to SIMPLE IRAs effective 1/1/2024
Discretionary Profit Sharing

No

Maximum Annual Contribution Per Participant

* Maximum compensation limit is $350,000 in 2025

Employee: $16,000 (if 50 years or older, an additional $3,500 allowed)

Employer: Must generally make matching contributions up to 3% of employee compensation or contribute 2% of total eligible employee compensation, regardless of employee contributions

Employee Eligibility

Note: For all plan types, the plan sponsor may exclude union employees

Participants must:

  • Have earned at least $5,000 in any of the two preceding years, and be reasonably expected to earn $5,000 this year
  • No age limit permitted
Minimum Vesting

Immediate

Features
Basic Plan Type

IRA based

Who Can Contribute

Employer

Employee Contributions

None. Contributions are generally by employer only.

Roth Contributions

No

Employer Contributions

Employer can decide whether to make contributions year-to-year

Discretionary Profit Sharing

No

Maximum Annual Contribution Per Participant

* Maximum compensation limit is $350,000 in 2025

Up to 25% of compensation, but no more than $69,000

Employee Eligibility

Note: For all plan types, the plan sponsor may exclude union employees

Participants must:

  • Have earned at least $5,000 in any of the two preceding years, and be reasonably expected to earn $5,000 this year
  • No age limit permitted
Minimum Vesting

Immediate

Sure401k
401(k)
Sure401k
Safe Harbor 401(k)
Other
Simple IRA
Other
SEP IRA
Features
Basic Plan Type

Defined contribution

Defined contribution

IRA based

IRA based

Who Can Contribute

Employee; employer contributions optional

Employee and employer

Employee and employer

Employer

Employee Contributions
  • $23,500 salary deferral allowed
  • Additional $7,500 catch-up contribution (age 50 and older)
  • Contributions may be pre-tax or post-tax (Roth)
  • $23,500 salary deferral allowed
  • Additional $7,500 catch-up contribution (age 50 and older)
  • Contributions may be pre-tax or post-tax (Roth)
  • $16,000 salary deferral allowed
  • Additional $3,500 catch-up contribution (age 50 and older)
  • Contributions may be pre-tax or post-tax (Roth)
  • Limits are increased by 10% for employers with fewer than 26 employees

None. Contributions are generally by employer only.

Roth Contributions

Yes, within deferral limit

Yes, within deferral limit

Yes, within deferral limit

No

Employer Contributions

Employer contributions are optional

  • Employer contributions are required
  • Mandatory minimum 4% employer match (e.g., 100% up to 3%, 50% on the next 2%)

or

  • 3% non-elective employer contribution (Note: 4% for late amendment)
  • Match formula can be enhanced (Note: Match can be applied to any deferral up to 6%)
  • Mandatory 3% employer match—three out of five years (1% minimum required for other two years)

or

  • 2% non-elective employer contribution
  • SECURE Act 2.0 also allows certain additional employer contributions to SIMPLE IRAs effective 1/1/2024

Employer can decide whether to make contributions year-to-year

Discretionary Profit Sharing

Yes

Yes

No

No

Maximum Annual Contribution Per Participant

* Maximum compensation limit is $350,000 in 2025

Employer/Employee Combined: Up to the lesser of 100% of compensation or $69,000 ($76,500 age 50 and older in 2024

Employer/Employee Combined: Up to the lesser of 100% of compensation or $69,000 ($76,500 age 50 and older in 2024

Employee: $16,000 (if 50 years or older, an additional $3,500 allowed)

Employer: Must generally make matching contributions up to 3% of employee compensation or contribute 2% of total eligible employee compensation, regardless of employee contributions

Up to 25% of compensation, but no more than $69,000

Employee Eligibility

Note: For all plan types, the plan sponsor may exclude union employees

Employers can select one or more of the following participant eligibility requirements:

  • Complete up to one year of service
  • Complete up to 1,000 hours of work
  • Be at least 21 years of age

Employers can select one or more of the following participant eligibility requirements:

  • Complete up to one year of service
  • Complete up to 1,000 hours of work
  • Be at least 21 years of age

Participants must:

  • Have earned at least $5,000 in any of the two preceding years, and be reasonably expected to earn $5,000 this year
  • No age limit permitted

Generally, must be at least 21; have earned compensation in three of the past five years; received compensation of at least $750

Minimum Vesting

Immediate on employee contributions; Employer contributions can be subject to vesting schedule

Immediate on employee and most safe harbor contributions; Employer contributions can be subject to vesting schedule

Immediate

Immediate

Contribution limits are subject to annual IRS cost of living adjustments (COLA) and are likely to change for subsequent years.

The importance of offering a retirement plan

A large percentage of Americans are not building up sufficient assets needed to maintain their standard of living in retirement. The problem is getting worse for younger generations.

28%

Of businesses with less than 10 employees offer retirement plans3

The small businesses who don’t offer employee retirement plans cite expense, administrative burden, and confusion about how to choose a provider.

$93,000

Household retirement assets

The median of total household retirement savings among all workers in 2020.4

9 Years

When Social Security is projected to run out

Social Security is projected to run out of funds in 9 years. At present, the Social Security Trust Fund is funded through 2034.6

94%

Employees interested in a 401(k) plan

94% of employees are interested in a 401(k) plan, second only to health insurance.5

25%

Without retirement savings

About 25% of non-retired adults in the U.S. do not have any retirement savings.7

Frequently asked questions

What is a 401(k) retirement plan?

A 401(k) plan is an employer-sponsored retirement arrangement. Employees contribute a defined amount of pre-tax or post-tax dollars each pay period to help save for their retirement. Employers can match all or part of the employee's retirement contributions or provide a profit-sharing contribution.

How do 401(k) plans work?

A 401(k) plan is a type of retirement savings arrangement sponsored by employers. Employees contribute to the 401(k) account from their own pay checks. An employer may match all or part of the employee’s contributions, creating an opportunity for the contributions to grow—many times tax-deferred—until retirement.

What are the benefits of a 401(k) for a small business?

Helping employees work towards their retirement goals could provide your business with up to $16,5003 in potential tax credits—possibly more if you offer matching or profit-sharing contributions. Plus, dozens of states—with more to come— mandate that small business owners provide employees with a retirement savings option or face potential penalties. For eligible employees, an employer match can help accelerate retirement savings.

How many employees are needed to offer a 401(k)?

Small businesses with one employee or many can offer 401(k) retirement plans.

Can a self-employed individual start a 401(k) plan?

Yes. Self-employed individuals are eligible to start a solo 401(k). As part of a solo 401(k), both the self-employed individual and its business can contribute to a plan account.

Does Sure401k offer 401(k) plans in my state?

Yes. Sure401k retirement plans, offered through our partner, ePlan Services, Inc., are available in 50 states.

What does it cost for a small business to start a 401(k) plan?

Current start-up costs for a 401(k) plan range from $500 to $2,000. However, the SECURE Act 2.0 is changing many aspects of the retirement industry. The legislation makes retirement plans more accessible to a wider range of businesses, specifically offering potential tax credits to small businesses.

What is the difference between a 401(k) and a SIMPLE IRA?

Key differences include eligibility, company size requirements, contribution limits, administrative complexity and contribution levels. Check out the 401(k) plan feature comparison for more information.

Can a small business offer a 401(k) plan?

Yes. Offering a 401(k) retirement plan can help small businesses attract and retain talent.

Can an LLC have a 401(k) plan?

Yes. Any type of business can start a 401(k) plan, including S Corporations, partnerships, sole proprietors, and LLCs.

Can the SECURE Act 2.0 benefit small businesses?

Yes, the SECURE Act 2.0 has the potential to help small businesses start a retirement plan. Historically, many small business owners have found it difficult to offer employees a retirement plan, often citing complexity, cost, and business size as obstacles.

With the passage of the 2.0, now is a great time to start a 401(k) retirement plan. Thanks to the SECURE Act 2.0, up to 100% of 401(k) start-up costs could be offset by tax credits for qualifying businesses—a potential savings of up to $16,5003 over three years. Plus, eligible businesses can qualify for an additional tax credit of up to $1,0004 per employee for employer contributions.

What are the different types of retirement plans?

There are several types of retirement plans available to employers, including the traditional 401(k) plan, safe harbor plan, and SIMPLE IRA, and SEP IRA.

There can be pros and cons to each type of plan. Many businesses tend to use 401(k) plans because they are flexible and enable employees to save more. Even with a 401(k) plan, there are different options, including:

  • Traditional 401(k) plans allow employees to save for their retirement through payroll-deducted contributions while also providing employers the option to make contributions to their employees' 401(k) retirement plan accounts. However, due to required annual non-discrimination testing—developed to ensure 401(k) plans do not favor owners or highly compensated employees (HCE) more than other employees—HCEs and business owners may have limits imposed on their annual contribution amounts.
  • Safe harbor 401(k) plans provide the same features as a traditional 401(k) plan and are exempt from some annual non-discrimination testing. A safe harbor plan requires minimum annual employer contributions using either a matching formula of at least 4% or a fixed annual contribution of at least 3%.
  • Solo(k) gives owner-only and family-only businesses the ability to make the maximum allowable contributions to a small business retirement plan. while providing access to accumulated balances through a loan feature. Business owners and their spouses can receive the same advantages of a traditional 401(k) plan, including the ability to make pre-tax and/or Roth contributions, and higher annual contribution limits than allowed in a SEP-IRA or SIMPLE plan.

Are there different employer  contribution options?

Yes. To explore our options, contact a member of our team at 866-497-2028.

What are employer contribution options?

Small business owners can easily make contributions to their employees' 401(k) accounts with a variety of simple options. As permitted by the IRS, the following plan options may be available:

  • Employer matching contributions. If the employer so elects in the plan document, the employer can make uniform matching contributions for employees who contribute elective deferrals (for example, 50 cents for each dollar deferred). Employer matching contributions can be discretionary (contributed in some years and not in others, depending on the employer's approval) or mandatory, as in SIMPLE plans and safe harbor 401(k) plans.
  • Employer discretionary or fixed non-elective contributions. Depending on the elections the employer makes in the plan document, the employer either can or must make contributions other than matching contributions for participants. These contributions are made on behalf of all employees who are plan participants, including participants who choose not to contribute elective deferrals. The employer can also determine not to provide discretionary or fixed non-elective contributions.

Can Sure401k help prepare estimated profit-sharing calculations for informational purposes?

Yes … just ask! For all 401(k) plans, the maximum contribution in 2024 is up to the lesser of 100% of compensation or $69,000 ($76,500 age 50 and older).

Are you ready for state-mandated retirement programs?

Dozens of  states—and counting—mandate that small business owners provide employees with a retirement savings option or face potential penalties.