What Do I Need to Have a Small Business 401(k) Plan? 1

What Do I Need to Have a Small Business 401(k) Plan?

Small business owners, including start-ups looking to provide their employees with a good retirement plan, sometimes find it difficult to set up a 401(k) plan because they feel they have limited time and resources or cannot afford one. However, setting up a simple and budget-friendly 401(k) plan will help you retain existing employees, attract new talent, and automate the plan administration. With the help of 401(k) provider Ubiquity, you’ll have everything you need to set up an effective small business 401(k).

What is a Small Business 401(k)?

Like a 401(k) plan for any large business, a small business 401(k) plan allows you to take out money from your paycheck before tax and save it for your retirement. All employers apart from state and local government bodies can adopt a 401(k) plan. This small business 401(k) is designed for individuals and companies with 1 to 100 employees. By opting for a 401(k) plan, small business owners can take advantage of the tax benefits and offer competitive retirement benefits to their employees.

Benefits of a Small Business 401(k)

Both business owners and employees can enjoy substantial benefits through the small business 401(k) plan. These benefits include:

How Can You Set Up A Small Business 401(K)?

Each 401(k) provider has different procedures and documentation required to set up the plan. The main steps involved in setting up a plan include:

The most important responsibility of a business owner is to promptly ensure that the plan contribution is deposited as per the procedure. If the owner is making matching contributions, the employer must also deposit these contributions before the IRS tax return’s due date to avoid any penalties.

How can a good 401(k) provider help you?

If you are a small business owner, you can seek assistance from a professional 401(k) plan provider who can help you set up a retirement plan and customize it based on your business needs. A knowledgeable 401(k) provider will walk you through the steps to make this as easy as possible. A well-informed professional can help you understand the offers, keep your best interests in mind, and offer transparency so that you can immediately start contributing and saving towards your retirement.


I am a writer, financial consultant, husband, father, and avid surfer. I am also a long-time entrepreneur, investor, and trader. For almost two decades, I have worked in the financial sector, and now I focus on making money through investing in stock trading.