Press Release

ShareBuilder 401k Offers Free and Discounted Set-Up to Help Businesses Start a 401(k) and Meet the Safe Harbor Deadline of October 1

Issued by Sharebuilder 401k

Aug. 13, 2024

SEATTLE -- ShareBuilder 401k, a leading provider of affordable, all-ETF 401(k) plans for small businesses and medium-sized companies, today announced a special offer to help businesses starting their first 401(k) to meet the upcoming Safe Harbor deadline – a popular retirement plan design. From August 13 to 20, businesses with employees establishing a new 401(k) plan will receive a free set-up, making the process easy and even more affordable. For those signing up between August 21 and September 3, ShareBuilder 401k will offer a 50% discount on the set-up price.

Safe Harbor 401(k) plans offer many benefits for business owners and their employees, including helping save for retirement, tax savings for those contributing, as well as an assist in attracting and retaining top talent. The Safe Harbor 401(k) automatically satisfies IRS plan testing requirements and helps employees and owners maximize their contributions without restrictions up to the 401(k) limits.

While matching is optional in providing a 401(k) plan, the Safe Harbor 401(k) plan design requires an immediate vesting match for employees, including owners. The great news for businesses with less than 100 employees concerned about the cash outlay of providing a match is that the recent Secure 2.0 Act upped the tax credits for businesses starting their first plan to include added credits to help offset employer contributions. Any employer contribution not covered by these tax credits is typically tax deductible for the company.

To start a Safe Harbor 401(k) plan, it must be established by October 1. Most providers have a deadline well in advance to ensure a company’s plan is ready to go on time and not delayed until January 1. By taking advantage of ShareBuilder 401k's offer, businesses can establish a low-cost, full-featured plan that simplifies and meets testing compliance while providing valuable retirement benefits to employees.

"Many small businesses are unaware of how affordable a 401(k) plan is, even if you have just an employee or two," said Stuart Robertson, CEO of ShareBuilder 401k. "Our goal is to make it as easy and affordable as possible for any size business to offer themselves and their employees a retirement plan. By providing free and discounted set-up, we hope to remove any perceived cost barriers and encourage more employers to take advantage of the benefits of a 401(k) plan."

A recent survey from ShareBuilder 401k identified that 55% of small business owners believe their business is too small to access a plan or cannot afford to offer a company match (28%). Additionally, 22% of owners believe providing a 401(k) plan is too expensive. However, providers like ShareBuilder 401k have developed retirement plans catering to small businesses' needs and constraints. Coupled with the Secure Act 2.0, enacted to provide significant tax incentives for small businesses, offering 401(k) plans is nearly cost-neutral, helping provide a more secure and affordable option for businesses.

ShareBuilder 401k offers a range of plans tailored to meet the needs of different-sized businesses, focusing on low costs, easy-to-use technology, and exceptional customer service. To learn more, visit www.sharebuilder401k.com

About ShareBuilder 401k

ShareBuilder 401k is a leading digital 401(k) provider specializing in low-cost, all-ETF retirement products and resources for small- to mid-sized companies, including owner-only businesses. Founded in 2005, and now serving more than 6,500 businesses across the US, ShareBuilder 401k is a pioneer of the index-based 401(k), digital quoting and purchasing of retirement plans, and providing investment management (ERISA 3(38)) services for every client’s fund roster. ShareBuilder 401k is committed to expanding access to retirement plans and leading more Americans to save through cutting-edge technology, low costs and quality education and support.

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