Affordable retirement solutions for you and your employees
Give yourself a retirement savings plan that lets you build for the future while helping your employees take the right financial steps. We offer competitively priced, quality 401(k) plans that can also help you retain employees and improve satisfaction.
Why would I want a 401(k) plan?
A 401(k) plan is a simple and affordable way to build a retirement strategy by making regular contributions to a retirement program from each paycheck.
After setting up your 401k Plan you can:
- Plan for your retirement with contributions you can afford.
- Provide your employees a retirement savings plan where they specify the amount to be deducted from their paychecks and the contributions are automatically invested in their 401(k) accounts.
- Avoid the high costs of retirement plans while still providing your employees the retirement options they deserve.
Why would I use WorkGroup Payroll for my 401(k) plan?
- Competitive and transparent fees – prices built for a small business budget
- Large selection of investments – 1000+ investment options at your fingertips
- Ease of use – one trusted source for retirement and payroll
Plan Types
Lots of popular 401(k) options at affordable prices to help you and your employees save as much as possible:
- Traditional 401(k) allows employees to save for their retirement through payroll-deducted contributions while providing employers the option to make additional contributions to their employees’ 401(k) accounts.
- Safe Harbor 401(k) provides the same features as a Traditional 401(k) plan and bypasses annual non-discrimination testing. A Safe Harbor plan requires minimum annual employer contributions using either a matching formula or a fixed 3% annual contribution, similar to a SIMPLE plan.
- Solo(k) gives owner-only and family-only businesses the ability to make the maximum allowable contributions to a retirement plan while providing access to accumulated balances through a loan feature. Business owners and their spouses receive the same advantages of a Traditional 401(k) plan, including pre-tax and Roth contributions, as well as higher annual contribution limits than allowed in a SEP-IRA or SIMPLE plan.
Employee Contributions
All employees, including owners, may defer up to $18,000 per year (or $24,000 per year, if age 50 or older).
- Regular Deferral is a pre-tax employee contribution that is deductible in the year it is made so the contribution grows tax-free. The accumulated balance will be taxed upon distribution at the individual’s then-current income tax rate.
- Roth Deferral is an after-tax employee contribution that is not deductible in the year it is made.
- Catch-Up Contributions are optional for individuals age 50 or older so they may defer up to an additional $6,000 to their 401(k) accounts, up to $24,000 annually including either Regular or Roth Deferrals.
Employer Contributions
You can easily make contributions to your employees’ 401(k) plans with a variety of simple options:
- Fixed Company Match enables you to match employees’ contributions at a fixed rate for a simple, predictable way to help them grow their retirement funds. This option is the most popular matching method for small businesses.
- Discretionary Company Match allows you to match a percentage of each employee’s deferral, giving the freedom to offer, raise or lower the match percentage annually.
- Discretionary Profit Sharing lets you make one-time or periodic contributions to employees’ 401(k) plans, even if they’re not actively contributing to their own accounts. We’ll prepare estimated profit sharing calculations upon your request.Learn more and contact us at 877-222-2927 today.