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STARTER 401(k)

The 401(k) for businesses ready to start – not ready to overthink.

The Starter 401(k) is a new plan type created by SECURE 2.0 specifically for businesses that don’t currently offer any retirement benefit. No employer contributions required. No nondiscrimination testing. No complicated plan design decisions. Just automatic enrollment, a simple deferral structure, and a plan that runs itself.
If you’ve been putting off offering retirement benefits because the process seemed too complicated or too expensive, the Starter 401(k) was designed for exactly that situation.
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How A Starter 401(k) Works

Think of the Starter 401(k) as the entry point into employer-sponsored retirement. Here’s what makes it different from a Starter 401(k)

1-No employer contribution required

No employer contribution required

The Starter 401(k) is a deferral-only plan. Employees contribute directly from their own paychecks, and the employer is not required to provide a company match. This eliminates employer contribution requirements, making plan expenses predictable and manageable for small businesses. 

2-No nondiscrimination testing

No nondiscrimination testing

Traditional 401(k)s require annual IRS testing. Starter 401(k) plans are exempt. The trade-off is lower employee contribution limits, but the administrative simplicity is significant.
3-Automatic enrollment built in

Automatic enrollment built in

All Starter 401(k) plans include automatic enrollment — employees are defaulted into the plan at a contribution rate between 3% and 15%, and they can opt out if they choose. Auto-enrollment consistently drives higher participation rates than voluntary enrollment, which means more of your employees actually build retirement savings.
4-Contribution limits for 2026

Contribution limits for 2026

Employees can contribute up to $6,000 per year ($7,000 for employees 50 or older). Lower than a standard 401(k)’s $24,500 — but more than enough for employees who are starting from zero.

Nearly two-thirds of small business employees still have no access to a workplace retirement plan. A Starter 401(k) changes that today, with zero employer contribution required.

Small business team meeting in a modern office to discuss workplace planning

Starting Small Doesn’t Mean Staying Small

The Starter 401(k) is designed as a beginning, not a ceiling. Businesses that start with a Starter 401(k) can upgrade to a standard 401(k) or Safe Harbor 401(k) as they grow — and employees carry their accumulated savings forward. 

For many small businesses, the right sequence is: Starter 401(k) to establish the plan and the habit, then a full 401(k) when you’re ready to offer a match and unlock higher contribution limits for yourself and your team.
401GO can move you from Starter 401(k) to a standard plan without switching providers. One platform, the whole journey.
FREQUENTLY ASKED QUESTIONS

Questions? We’ve Got Answers.

Answers to frequently asked questions.
Who is eligible to offer a Starter 401(k)?

Any employer that doesn’t already sponsor a retirement plan. The Starter 401(k) was created specifically for businesses offering a retirement benefit for the first time. If you already have a 401(k), Safe Harbor, or SIMPLE IRA in place, the Starter 401(k) is not available to you.

Yes — as an employee of your own business, you can contribute up to $6,000 per year (or $7,000 if you’re 50 or older). However, as the employer, you cannot make additional employer contributions to a Starter 401(k). For owners who want to contribute more — for themselves or their team — a standard 401(k) or Safe Harbor plan unlocks higher limits on both sides.

Yes. Eligible small businesses can take advantage of federal SECURE 2.0 tax credits:

  • Startup Administrative Credit: Covers up to 100% of ordinary administrative and setup costs, up to $5,000 per year for the first three years.
  • Auto Enrollment Credit: Provides an additional $500 per year for 3 years if you include an eligible auto enrollment feature.
  • Employer Match Credit: Additional tax credits of up to $1,000 per employee to help offset employer matching contributions over the first several years.

The Starter 401(k) qualifies for startup administrative and auto enrollment credits, which significantly offset the cost of getting started.

401GO manages the transition. Your plan history, employee account balances, and payroll integration carry forward. You don’t start over. You just unlock higher contribution limits, the option to add an employer match, and the full plan design flexibility of a standard 401(k).
Yes — all Starter 401(k) plans are required to include automatic enrollment, with a contribution rate between 3% and 15% of compensation. Employees can opt out, but they’re enrolled by default. This requirement is actually a feature: auto-enrollment consistently produces higher plan participation than voluntary enrollment, which means more of your employees build savings.

The Right Plan for Every Client

401GO covers the full range of retirement needs so you can say yes to the right plan for you.

Standard 401(k)

The core offering, built for SMBs

Safe Harbor 401(k)

Simplified compliance for employers who want it

Starter 401(k)

For businesses just getting started

Solo 401(k)

For owner-only businesses

ERISA 403(b)

Purpose-built for tax-exempt organizations

Traditional IRA

Individual retirement access

Cash Balance

For businesses with more complex planning needs

FUTURES BUILT HERE

The Hardest Part is Starting. We Made That Part Easy.

You don’t need to offer a match. You don’t need to pass a compliance test. You just need to turn it on. Start with a Starter 401(k) today and scale when you’re ready.
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