While 401(k)s offer substantial benefits to both businesses and employees, many owners are nervous about starting a plan for their company.
And why not? 401(k)s have traditionally come with high costs, significant time requirements, and complex compliance burdens.
However, fintech platforms have transformed the way businesses approach retirement benefits. What used to be a luxury reserved exclusively for large enterprises is now accessible and affordable for companies of all sizes.
Here are three reasons you don’t need to be nervous about starting a 401(k):
Reason 1: Costs are clear and substantially offset by tax credits
As a small business owner, you have to be cost-conscious.
In the past, legacy providers charged thousands of dollars in hidden setup fees, TPA charges, and administration costs. At 401GO, we’ve eliminated redundant costs by bundling our services—acting as recordkeeper, TPA, custodian, and fiduciary all under one roof.
Furthermore, federal SECURE 2.0 tax credits make launching a plan far more affordable:
- Administrative Tax Credits: Eligible small businesses with 50 or fewer employees can qualify for tax credits covering up to 100% of administrative costs (up to $5,000/year for three years).
- Auto-Enrollment Credit: Earn an additional $500 per year for up to three years by adding an automatic enrollment feature.
- Employer Contribution Credits: Additional credits are available to offset employer matching contributions over the first several years.
With transparent pricing tiers (like GO-Starter and GO-Plus) paired with generous tax credits, offering a 401(k) no longer requires deep pockets.
Reason 2: Time requirements are minimal
Many small business owners worry about the time commitment required to run a plan.
The traditional industry standard of 4 to 6 weeks for plan setup is a relic of the past. At 401GO, our automated setup takes you from start to finish in as little as 15 minutes.
By automating manual data syncs through payroll integrations, the typical business owner spends as little as 10 minutes per year on routine plan administration.
Reason 3: Compliance is fully managed
Offering a 401(k) creates compliance and fiduciary responsibility under ERISA regulations, including annual filings like Form 5500.
At 401GO, our technology handles the heavy lifting:
- Automated Eligibility Notifications: We automatically track employee eligibility and invite eligible team members to join.
- Form 5500 Preparation & Filing: We complete, sign, and file Form 5500 on your behalf, identifying any red flags early to keep your plan in good standing with the IRS and Department of Labor.
Setting minds at ease
Starting a 401(k) doesn’t have to be complicated or overwhelming. With transparent pricing, fast setup, and automated compliance, 401GO makes retirement simple.
To explore our current plan options and transparent pricing, visit our official Pricing Page today.