Updated: December 16, 2024
Having access to a retirement savings plan is one of the most sought-after employee benefits. Adopting a plan can be a strategic investment for employers looking for ways to encourage job seekers to apply for open positions or simply retain top-performing employees. But how do you know if setting up a retirement savings plan will fit into your organization’s budget?
The calculator below can help you quickly estimate how much it will cost to set up a 401(k) for your company. Just enter a few details below, and you’ll have an idea of costs in a few clicks.
Why offer a 401(k) to your employees?
Offering this perk can go a long way toward helping your staff members sock away savings for post-work life — and it can also have a positive impact on your workplace. For example, it can make a difference in recruiting efforts by communicating to job seekers that you have a company culture that cares about your employees’ long-term well-being and financial security. Furthermore, it shows your current team members that you are committed to supporting their savings goals beyond their salary.
Did you know a 401(k) may be eligible for tax credits?
For small businesses looking to establish a retirement savings plan, it could be a good idea to see if there are tax credits they can take advantage of. A tax credit directly reduces a business’s tax liability, deducting dollar-for-dollar from the amount owed to Uncle Sam at tax time.
For some employers that are offering a retirement savings program for the first time, tax credits might be available to help offset start-up costs, educate employees, and cover some fees that come with plan administration.
Setting up 401(k)
For businesses that want to set up a retirement savings plan like a 401(k) but already have a lot on their plate, they might be unsure if they can invest the time. The good news is that most providers make it simple to get a program off the ground, offering personalized assistance to help you understand what can be a good fit for your company and providing support when there are questions. Once you have an agreement in place, steps include enrolling employees, helping them understand how to contribute, and figuring out the employer match you’re comfortable with.
For assistance or to learn more about setting up retirement benefits for your company, learn more about OnPay’s 401(k) partner, Guideline.