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Updated Aug 20, 2024

The Best Employee Retirement Plans for Small Businesses 2024

ADP is a popular retirement plan provider, but you should also consider Paychex, USA 401K and other top companies.

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Written By: Max FreedmanSenior Analyst
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This guide was reviewed by a Business News Daily editor to ensure it provides comprehensive and accurate information to aid your buying decision.
Adam Uzialko
Senior Editor
Business News Daily earns compensation from some listed companies. Editorial Guidelines.

To help identify the best employee retirement plan for your business, we’ve evaluated the industry’s leading providers to determine what each one does best. From all-in-one HR solutions and safe harbors to solopreneur 401(k)s, the retirement services below offer a worry-free and fiscally responsible way to manage your company’s employee retirement plan

Sponsored Partners
Human Interest Employee Retirement
Best for Affordability
Human Interest company logo
Visit Site
Links to Human Interest Employee Retirement
  • $120 per month & $5 per employee
  • $499 setup fee
  • Five types of retirement plans
Paychex Employee Retirement
Best All-in-One Solution
Paychex company logo
Visit Site
Links to Paychex Employee Retirement
  • Requires a quote
  • No setup fee
    • Four types of retirement plans
USA 401K
Best for Cost Transparency
USA 401k logo
Visit Site
Links to USA 401K
  • $500 annual fee + $20 per employee
  • $250 setup fee
  • Vanguard funds + 15,000 options
ADP Employee Retirement
Best for Small Businesses
ADP company logo
  • $150 per month & $4 per employee
  • No setup fee
  • Three types of retirement plans
ShareBuilder 401k
Best for Low Fees
Sharebuilder 401k company logo
  • $8 per month
  • No setup fee
  • Five types of retirement plans
Table Of Contents Icon

Table of Contents

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At Business News Daily, we’ve spent years researching and testing the HR software and services that entrepreneurs need to manage their teams effectively. Our team of small business HR specialists conducts independent evaluations of the best HR service providers to determine which best support internal operations. We also regularly consult with HR experts, including recruiters, hiring managers, compliance officers and HR consultants, to stay on top of the latest HR trends impacting small businesses. And every review we publish is evaluated by our editorial staff to ensure objectivity, accuracy and fairness are at the core of our decision-making. Learn more about our editorial guidelines.

How We Decided

To determine the best employee retirement plans, our small business HR experts sought providers that offered a variety of plan types (401(k), Roth, IRA, etc.), low investment fees and transparent pricing. We considered the extent to which plans could be customized by both the employer and employee and tested plan management self-service portals to get a sense of their user-friendliness. We also looked...

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To determine the best employee retirement plans, our small business HR experts sought providers that offered a variety of plan types (401(k), Roth, IRA, etc.), low investment fees and transparent pricing. We considered the extent to which plans could be customized by both the employer and employee and tested plan management self-service portals to get a sense of their user-friendliness. We also looked into whether the vendor’s plan administration system integrated with leading HR and payroll software. 

23

considered

10

reviewed

5

selected

To determine the best employee retirement plans, our small business HR experts sought providers that offered a variety of plan types (401(k), Roth, IRA, etc.), low investment fees and transparent pricing. We considered the extent to which plans could be customized by both the employer and employee and tested plan management self-service portals to get a sense of their user-friendliness. We also looked into whether the vendor’s plan administration system integrated with leading HR and payroll software. 

23

considered

10

reviewed

5

selected

Once your business has a team of employees, it’s best to set up an employer-sponsored retirement plan, which can help improve employee retention rates. Some states even require certain types of employers to offer 401(k) plans. However, finding the best type of employee retirement plan and provider can become an arduous challenge with so many choices available. To find the right employee retirement benefits providers for your business, look for vendors that offer plan design, administration, recordkeeping, auto-enrollment and easy integration with company payroll.

ADP retirement plans

With so much at stake, it’s important to identify the right retirement plan for you and your organization. Source: ADP

Compare Our Best Picks

BND Ribbon
Our Top Picks for 2024
Human Interest Employee Retirement
Paychex Employee Retirement
USA 401K
ADP Employee Retirement
ShareBuilder 401k
Rating9.6/109.2/108.7/109.1/108.7/10
Best use case

Best for Affordability

Best All-in-One Solution

Best for Cost Transparency

Best for Small Businesses

Best for Low Fees

Monthly pricing

Starting at $120 per month, plus $5 per employee; one-time $499 setup fee

Requires a quote

$250 one-time installation fee;

$500 annual fee;

$20 per participating employee

401k Essentials: $150 per months plus $4 per participant per month

SIMPLE IRA administration starts at $480 per month

Pricing for other plans not disclosed online

Starting at $8 per month for Solo 401(k) Saver

Add-on fees

0.5% per year on plan assets, plus 0.07% in average fund fees

Requires a quote

No 12b-1 fees, exchange fees, or minimum balance fees

401k Essentials: 0.10% of eligible assets as annual investment management fee, minimum $20.83 per month

Fees for other plans require a quote

0.75% for plans with 11-25 participants and less than $500,000 in assets

Types of plans

401(k), 403(b), solo 401(k), safe harbor 401(k) and individual retirement accounts

Traditional 401(k), Owner-only 401(k), Solo 401(k), SIMPLE IRA

Safe harbor 401(k), Traditional 401(k)

401(k), SIMPLE IRA, SEP IRA

Solo 401(k) Saver, Solo 401(k) Plus, Safe harbor 401(k), Traditional 401(k), Tiered profit-sharing 401(k) S

Ease of use

Integrated plan administration and payroll

Option of comprehensive recordkeeping and administration

Concierge-level service

Easy enrollment via mobile app

Fully administered plans with payroll integration and bundled recordkeeping

Online and mobile enrollment

Both

Both

Online only

Both

Online only

Acts as fiduciary

Yes

Yes

Yes

Yes

Yes

Review Link
Scroll Table

Our Reviews

Human Interest company logo
Editor's Rating: 9.6/10
Visit Site
Links to Human Interest Employee Retirement

We picked Human Interest as the best for affordability because of its relatively low cost for a company account and each participating employee. Fully automated plans – complete with full recordkeeping, administration and payroll integration – start at $120 per month, plus $5 per employee per month. Employers can choose from three plans – Essentials, Complete and Concierge – each with increasing levels of management.

Human Interest portfolios

Employees can allocate their portfolios with helpful recommendations during the initial setup process. Source: Human Interest

Beyond the payroll integration and automated administration available through the Essentials plan, Complete provides administration, tax support and 3(16) fiduciary services. The Concierge plan includes all of these features, as well as access to dedicated account management. Human Interest also offers a wide range of investment options, including stock, bond and international mutual funds, as well as real estate funds and an FDIC-insured cash deposit account.

Subscription PlanPriceFeatures
Essentials$120 per month plus $5 per eligible employeePayroll integrations, flexible plans, zero transaction fees for employees and 3% cashback (up to $250) through a financial wellness program.
Complete$160 per month plus $7 per eligible employeeEverything in Essentials plus auto-file IRS form 5500, 3(16) administrative fiduciary services and ERISA bond procurement.
Concierge$200 per month plus $9 per eligible employeeEverything in Complete plus a dedicated account manager, audit defense, tax credit assistance, compliance monitoring and paper mail notices to employees.

  • Includes free investment advice and portfolio rebalancing for employees.
  • Offers 403(b) plans ideal for small foundations and churches.
  • Offers easy-to-manage safe harbor plans for small companies.
  • The one-time setup fee is relatively expensive.
  • No plans are available for sole proprietors.
  • Dedicated account managers are limited to the most expensive plan.

Human Interest customers appreciate how the service handles most of the administrative overhead for businesses with 401(k)s and its well-priced range of options for funds. Human Interest earned a 7.6.0/10 on TrustRadius.

Paychex company logo
Editor's Rating: 9.2/10
Visit Site
Links to Paychex Employee Retirement

We identified Paychex as the best all-in-one solution because of how well it helps small business owners simplify plan management, reduce the risk of reporting errors and save time for HR professionals. The company effectively combines HR, payroll and benefits solutions with 401(k) and retirement services for businesses of all sizes. Small business owners can work with Paychex to build a customized retirement plan, including a traditional 401(k), an owner-only 401(k), a solo 401(k) for sole proprietors and SIMPLE IRA plans.

As an added layer of convenience, Paychex has a mobile app that you can use to view your accounts. Through this app, you and your employees can check your investments and review contribution amounts, as well as access various other functions that generally are accessed via the desktop version.

Paychex contributions

Paychex makes it easy to adjust your contributions. Source: Paychex

Paychex also assigns each customer a dedicated team during onboarding to help them build, administer and troubleshoot a retirement plan tailored to the business’s unique needs. Unfortunately, like many of the employee benefits retirement providers we reviewed, Paychex does not disclose its pricing and fees online. You must contact the company to request a free quote, but this is easily accomplished online or via phone.

Paychex users also have the option of receiving financial wellness services through FinFit. With this program, employees can ensure they know where they stand regarding current financial obligations, which can help them decide how much they should be investing toward their retirement.

Unfortunately, Paychex does not provide public pricing for its retirement services. To inquire about pricing, you’ll need to speak with a Paychex sales representative for a custom quote. Agents typically respond to new customer inquiries quickly during normal business hours.

  • Most companies can likely bundle and save on employee service expenses.
  • Offers many employee investing tools and mobile access.
  • Includes a high level of plan customization.
  • No public pricing is available for any retirement services.
  • The user interface feels dated.
  • There’s no public list of available funds for employee investment.

Paychex customers who utilize the all-in-one platform enjoy the efficiency of having payroll, retirement and workers compensation insurance in one place. They also appreciate the company’s responsive customer support team. Paychex earned a 6.6/10 on TrustRadius, with almost 67 percent of reviews at 9/10 or above in the last year.

USA 401k logo
Editor's Rating: 8.7/10
Visit Site
Links to USA 401K

USA 401k is a small, independent retirement benefits provider that offers services through a subsidiary of MassMutual. Unlike other top employee retirement benefits providers, USA 401k offers extremely transparent pricing. What’s more, the company does not charge 12b-1 fees, exchange fees or minimum-balance fees.

USA401K overview

Employees can see their retirement overview from the home dashboard. Source: Vestwell

Employers can choose either the New 401(k) plan, which is meant for businesses with one to 500 employees, or the Existing 401(k) plan, which is designed for companies with 501 or more employees. In general, New 401(k) is better for businesses that do not already offer a 401(k), while Existing 401(k) is better for those with an existing plan. Employees get access to concierge-level guidance throughout implementation as well as ongoing administration, and they can take advantage of payroll integration and assistance with compliance and reporting. Discounts may be available for businesses based on the plan size. USA 401k also partners with employee savings and investing company Vestwell for recordkeeping and plan administration services.

Subscription PlanPriceFeatures
New or Existing 401k$500 annual fee plus $20 for each participating employee; $250 setup feeSignature-ready 5500 forms, payroll integration, Roth 401k, profit sharing, loans and hardship withdrawals, tax reporting, compliance, mobile enrollment and no monthly fees.

  • Transparent pricing and fees for all plans.
  • Provides investment opportunities for more than 15,000 funds and 1,000 ETFs.
  • Offers plans for businesses of any size.
  • Customer service availability varies by plan.
  • Plan customization options are limited.
  • Types of retirement plans are limited.
ADP company logo
Editor's Rating: 9.1/10

ADP stands out as the best employee retirement benefits provider for small businesses because of its comprehensive payroll, HR outsourcing and benefits services, all of which can be integrated through the company’s SMARTSync Comprehensive Plan Automation. ADP offers a basic 401(k) plan that requires business administrators to select and monitor the investment options that are available to employees, as well as the more robust 401(k) Essential plan. Investments range from stock and income mutual funds to specialty funds, including real estate and technology.

ADP investments

Employees get fast access to up-to-date information on all of their plan retirement investments. Source: ADP

With the Essential plan, you can customize automatic enrollment options, employee eligibility requirements, contributions, vesting schedules and more. Alternatively, the standard 401(k) plan requires more active management by plan administrators, which may be too much work for many business owners, especially employers with a lot of employees or employers that don’t have dedicated HR teams. Regardless of the plan, employees get access to ADP’s mobile app, which makes it easy to enroll in benefits and choose investments.

As with many top providers, ADP does not publish its pricing online. However, you can contact the company via telephone or click the Start Quote button to begin building a small business retirement plan with a representative.

ADP does not provide public pricing for all of its retirement services. Based on previous reviews, we can tell you the 401(k) has a monthly base price of $150 plus $4 for each employee participant. The company also charges 0.10 percent of eligible assets as part of an annual fee related to investment management services, with a minimum monthly fee of $20.83 per month. We’ve also identified administrative fees for ADP’s SIMPLE IRAs at $480 per month, but no other pricing information is available. Given ADP’s wide assortment of business service products, pricing will vary widely with many bundled opportunities available.

  • Businesses can bundle many employee services including payroll, HR and benefits.
  • The mobile app makes setup and management easy for employees and owners.
  • Plans include access to a dedicated account manager.
  • There’s no public pricing for most retirement and employee service products.
  • Investment fees are not disclosed online.
  • The number of available individual investment funds is relatively limited.

Small business owners who use ADP for benefits, HR and payroll say the provider “makes our lives easier” by putting everything in one platform that’s easy to scale as a company grows from 30 to 250 employees. ADP received a score of 7.9/10 on TrustRadius, with 86 percent reporting they would purchase their product or service again.

Sharebuilder 401k company logo
Editor's Rating: 8.7/10

ShareBuilder 401k is a standout in the retirement benefits space because of its low fees. It specifically designs employer retirement plans with low-cost investment options to make sure that total investment fees remain under 1 percent. Prices start at $8 per month for the Solo 401(k) Saver plan designed for self-employed individuals, while the Traditional 401(k) for businesses with employees starts at $110 per month that provides you with investment management oversight of 22 index funds, one money market and six model portfolios.

ShareBuilder ETFs

ShareBuilder offers ETFs including equity funds, fixed-income (bond) funds, speciality funds and stable value funds. Source: ShareBuilder

Another big benefit of ShareBuilder 401k is that the entire process of setting up and administering a small business retirement plan is digital. All paperwork and administration are automated, and it’s easy to oversee your account from anywhere. Additionally, ShareBuilder 401k recently expanded its ETF options to include environmental, social and governance (ESG) funds for the first time. We like that this expands the investment options for participants.

ShareBuilder 401k pairs you with a customer success manager to create a customized and detailed program tailored to the needs of your business and employees. From vesting schedules to employee education efforts, ShareBuilder 401k can help you build a complete program. This way, you can focus on the financial goals of both your business and your employees.

Self-Employed Subscription PlansPriceFeatures
Solo 401(k) Saver$8 per monthTax-deferred contributions, one-time contributions, self-administration, investment management oversight of 6 model portfolios, automatic pricing discounts, guides, videos and calculators.
Solo 401(k) Plus$25 per monthEverything in the Saver plan plus additional owners including spouses, Roth 401(k) options, loan options, auto ACH contributions, fully administered plan and investment management oversight of 22 index funds with 1 money market.
Business with Employees PlansPriceFeatures
Safe Harbor 401(k)$95 per monthRoth 401(k) and tax-deferred options, payroll integration options, webinars, guides, videos, calculators, signature-ready 5500 forms, loan and hardship withdrawal options, access to advisors, compliance planning and checklist, automatic enrollment with qualified default investment options and investment management oversight of 22 index funds, 1 money market, and 6 model portfolios.
Traditional 401(k)$110 per month
Tired Profit-Sharing 401(k)$190 per month

  • Offers a wide variety of 401(k) retirement plan options.
  • Investment fees are guaranteed to remain below 1%.
  • Your flat monthly fees get lower as you add more assets and participating employees.
  • There’s no mobile app.
  • Sharebuilder uses third-party providers for some services like advisory.
  • There are no IRA plan options.

Alternatives to Consider

The following employee retirement plan providers may not have scored as high as our best picks above. Still, they all offer reliable service and an attractive mix of options that could make one of them the best fit for your employees’ retirement plan needs.

Vanguard – Best for Investment Flexibility

As one of the oldest and largest mutual fund companies in the world, Vanguard offers a wide range of mutual funds and ETFs for account holders to choose from. The company also offers retirement services, including individual retirement accounts and some small employer-sponsored plans.

Vanguard shines because of its massive list of cost-effective investment options. Long considered the king of cheap investing, Vanguard has been helping individuals and small businesses save for retirement for more than 40 years. Of its actively managed funds, 86 percent have outperformed their peers over the past decade. What’s more, the average fund expense ratio at Vanguard is 84 percent lower than the industry average. Another bonus is that the minimum initial investment required to open a small business retirement account is the price of one share.

Fidelity – Best for the Self-Employed

Fidelity is one of the largest privately owned financial services companies in the world. The firm provides a wide array of services, including individual retirement accounts and employer-sponsored retirement plans. Many of the IRA options can be opened without an advisor, including simplified employee pension (SEP) IRAs, which are a great cost-effective option for entrepreneurs. Accounts can be set up quickly and easily online.

Within these retirement accounts, particularly the IRA options, Fidelity customers get access to a full array of investment options. Users can trade U.S. stocks, ETFs and options for zero commission, and there are no annual fees for SEP IRAs. If you’re self-employed and want a retirement account you can set up online, Fidelity is a great option that has a well-deserved excellent reputation.

Guideline – Best for Compliance

Guideline is a relatively new company that has a particularly strong safe harbor 401(k) offering. Safe harbor 401(k) plans are great for small business owners because they allow company owners to maximize their own contributions, even if not all of their employees participate in the plan. Business owners who use a traditional 401(k) instead may be prohibited from maximizing their contributions, because the IRS imposes limitations based on employee participation and contribution rates.

Because Guideline is an online option, it’s easy to set up and relatively cost-effective. The company’s basic plan starts at $49 per month, plus $8 per employee per month. Guideline’s other plans, which offer additional features, cost $79 and $129 per month. Employees are also charged additional account fees, but they are minimal: 0.08 percent annually.

Shelton – Best for Customer Support

Shelton Capital Management differentiates itself in a competitive market by providing its clients with concierge-level customer service and support, included with all of its 401(k) retirement plans. Shelton’s commitment to service can be seen in other areas like on-site live investment education sessions designed to help boost participation rates. U.S.-based reps are available to answer calls from participating employees and provide ongoing support wherever needed.

The company offers 3(38) investment fiduciary services with a focus on supporting small business owners and employees with 401(k) plans. Public pricing is not available for Shelton’s 401(k) plans, but ongoing costs will typically include investment fees, often as a percent of total assets. Other costs include administration fees and individual service fees.

Perfect401k – Best for Easy Implementation

Perfect401K offers one of the easies implementation processes we’ve seen. If you want to attract top talent with a competitive benefits package but you’re intimidated by the thought of implementing a retirement plan, Perfect401(k) may be the best fit. The company makes it easy for business owners to set up a retirement plan for their employees by assigning each business a designated implementation team that handles the plan design, enrollment and training.

The Perfect401(k) plan costs employers $375 per quarter ($1,500 annually) for 10 employees, plus $7.25 per additional employee each quarter. Employees are charged 0.67 percent or less of their account balance each month to cover the cost of mutual funds, investment consultation, educational tools and other management fees.

Employee Retirement Provider Costs

Business owners can expect to pay $20 to $200 per month for their employee retirement plan, plus $4 to $15 per employee per month to cover the cost of administration and recordkeeping.

Additionally, when small business owners set up a retirement plan, there are usually annual fees for administration, recordkeeping and filing preparation. Providers also may charge fees for serving as a plan fiduciary, conducting on-site visits, or preparing educational materials or newsletters. Some companies may charge separate annual advisory fees for assisting with plan design and serving as a resource for employees who need assistance.

Separately, many costs of small business retirement plans are covered by the expense ratios of the investments included in the plan. These fees are paid by mutual funds to the plan provider based on the amount of assets that plan participants have invested in the fund.

Key TakeawayKey takeaway
Employee retirement plans typically charge a base rate ranging from $20 to $200 per month, plus $5 to $20 per employee per month.

Employee Retirement Plan Features

Employee retirement benefits providers have many common features. Most offerings include certain core services, such as plan administration, recordkeeping and preparation of IRS filings. Some also handle plan design (investment selection) and employee enrollment, serve as a plan fiduciary, and sometimes even manage company payroll.

Onboarding

Benefits need to be explained to employees as part of their enrollment. Some providers offer an introduction and/or training course to educate employees about the benefits available to them.

ADP approvals

Most providers make it easy for administrators to see who’s enrolled and who’s waiting for any approvals. Source: ADP

Easy online administration

You should be able to handle your plan’s benefits administration online without ever having to visit an advisor’s office.

Recordkeeping and compliance

Plan providers should handle all aspects of plan compliance, annual filings and necessary documentation.

Investment selection

Most providers help you pick the investment options to include in your plan and guide you in employee eligibility and company 401(k) matching.

ShareBuilder fund types

It’s a good idea to consider the types of funds you and your employees would like available for investing. Source: Sharebuilder401k

Mobile enrollment for employees

Increasingly, people spend more time on mobile devices in lieu of PCs. Employees should be able to handle their account setup and maintenance via a mobile app or browser.

Employee resources

Plan providers should serve as a resource for employees who have questions about their benefits, though most don’t provide investment advice.

Artificial intelligence

Many retirement plan providers now provide AI-powered “robo advisors” to help enrollees plan for the future. This makes retirement planning more accessible for employees, and can help them manage risk.

Did You Know?Did you know
Offering employee retirement plans helps your business as well as your employees. Learn how offering a 401(k) plan benefits small businesses.

Advantages of Employee Retirement Plans

Retirement benefits can be a big draw for employees. In fact, 81 percent of major employers offer a 401(k) plan, according to a survey from Callan, making it an important benefit to offer to your team. Fortunately, anyone can set up a retirement plan for their small business, but using an independent provider can help you compete with the resources of larger companies. Here are a few benefits of using a professional provider.

Helps to attract and retain talent. Today’s job market is competitive, especially for small business owners looking for workers. The U.S. unemployment rate sits at 3.8 percent as of March 2024. Many industries have faced labor shortages, and the cost of training and onboarding new employees is prohibitive for many businesses. Business owners can use a solid retirement plan as a tool for recruitment and retention. According to Gusto, 40 percent of employees are less likely to leave a job in the first year if it offers a retirement plan.

Improves productivity. Your HR manager will be a lot more productive (as will your employees) if everyone’s retirement benefits are handled centrally by a professional provider.

These providers can ensure that employees have easy access to their retirement accounts

Saves time for recordkeeping. Retirement plan providers have software that makes plan administration and recordkeeping totally seamless and largely automated.

Reduces the pressure of compliance requirements. The professionals who work with retirement service companies are up to date on the regulations and familiar with current best practices. [Related: How to Borrow Against Your 401(k)]

Choosing Employee Retirement Providers

Selecting an employee retirement benefits provider takes some research and careful consideration of your particular circumstances. Even after you settle on a platform, you should reassess it periodically to make sure you’re getting everything you need. Follow these steps to choose the right employee retirement benefits provider for your business:

1. Research providers

Do you plan on starting your business as a sole proprietor? Do you want to open up a small shop in a rural area? Is your business model heavily reliant on digital marketing and web conferencing? Figuring out your business type could greatly determine the business internet plan you decide on for your business needs.

Did You Know?Did you know
Some internet providers include additional features for specific business internet plans, while others offer them for an additional charge. Consider this when deciding what specific business internet needs you have for your business.

2. Check out reviews

After considering the pros and cons of being a small business owner and establishing your business brand, you’ll want to think about where to host your business. Most of the business internet providers we’ve listed offer relatively vast internet coverage. However, location is still something that should be considered when deciding what business internet plan to use. This is especially important if your team works off of a hybrid work model, where some employees may need to work from home in addition to working on-site. If you decide to make telecommuting a permanent arrangement for your business model, you’ll also need to consider if being a fully-remote team is an option.

3. Evaluate the investment selections

Do you plan on starting your own business as an aspiring entrepreneur or do you have a team already established? Do you have an idea of how many people you plan on hiring or have you closed in on your initial round of employees? If your business size is relatively small, you may be able to utilize a lower-tier business internet plan. When you need to upgrade or switch, most business internet providers will be more than happy to help you transition as your business scales.

4. Review the fees

ETFs and mutual funds charge fees, also known as expense ratios, to cover the cost of operating the fund. Carefully review the investments offered by each plan provider and their associated fees. Even small differences in expense ratios can greatly affect the final value of an employee’s retirement fund over time.

5. Reevaluate periodically

After you choose a provider and set up an account, review both your account and the provider regularly to gauge their performance. Assess both at least annually to make sure you don’t need to make a change.

Methodology

At Business News Daily, our team of small business experts have been researching employee retirement plans for years, comparing some of the leading solutions across more than 30 key metrics. We considered 23 employee retirement plans and closely reviewed and tested 10 of them before selecting our five best picks above.

Below are the factors we considered when determining our best picks. Each is weighted according to how much the criteria typically influences business owners’ buying decisions.

  • Pricing (30%): We considered not just the cost of the employee retirement plans but also plan administration fees, costs to employees, and the number of plans available to choose from.
  • Enrollment and Onboarding (25%): We evaluated how easy it was to enroll in an employee retirement plan and whether a company offered online and mobile enrollment options.We also considered how much support each company offered when onboarding employees to their program, including explanation of benefits.
  • Usability (20%): We paid close attention to the ease with which employees could administer their plans and manage funds online. We tested each company’s benefits dashboard and tools like fund rebalancing.
  • Customer Support (15%): We examined the ease with which customers can contact the team in need of help. We also considered whether companies gave employees the option to work with financial advisors when administering their plans.
  • Expert Insight (10%): Our product reviews are conducted by finance and HR experts who are deeply familiar with employee retirement plans. Given their institutional knowledge of different platforms and firsthand experiences using these programs, we take their judgment into account when determining our best picks.

In addition to scoring each employee retirement plan we reviewed based on this criteria, we also determined the best use case scenarios for each. No two businesses are exactly alike, so we put ourselves in the shoes of different types of small business owners and identify the best employee retirement plan for a variety of needs.

To learn more about how we review and test financial products and services for small businesses, read about our editorial process here. 

Employee Retirement Provider FAQs

Anyone who has earned income and isn’t eligible for an employer-sponsored retirement plan can set up a 401(k) of their own. It’s not easy, but it can be done. The IRS has numerous administrative and recordkeeping requirements. There are forms that have to be filed at setup and annually – tasks that employee retirement benefits providers handle on a plan sponsor’s behalf.

If a 401(k) plan sponsor – a small business owner or self-employed entrepreneur with a 401(k) – is dissatisfied with their 401(k) provider, they can change providers. Making a change is typically inconvenient and involves meetings with employees for training and re-enrollment, but you can certainly do it if you aren’t satisfied.

The IRS issues guidance on how much employers and employees can contribute to 401(k) plans each year. For tax year 2024, employers can contribute at most 100 percent of the employee’s total annual wages or $69,000 – whichever is smaller – up from $66,000 in 2023. This limit increases to $76,500 for employees ages 50 and older. However, the $69,000 figure represents the maximum allowed total for employee and employer contributions. Employees can contribute at most $23,500.

Retirement options are only slightly different for small business owners with no employees other than a spouse. In that case, you can set up a self-employed 401(k) with a $23,000 annual contribution limit as of 2024 ($30,500 for people aged 50 and over), which is up from $22,500 in 2023. Total employee and employer contributions cannot exceed $69,000.

Small businesses that have fewer than 100 employees and are setting up a retirement plan for the first time may be eligible for the Retirement Plans Startup Costs Tax Credit. For the first three years you offer a retirement plan for employees, you can earn a credit for up to 50 percent of the plan’s setup costs. This can amount to the greater of $500, or the lesser of $250 multiplied by the number of eligible employees or $5,000. Contributions for employer matching are also tax deductible.

Some states have either passed or are considering legislation requiring businesses to provide a retirement plan or to register with a government-sponsored retirement plan. These laws are aimed mostly at larger businesses, but some apply to small businesses as well. For example, California now requires businesses with five or more employees to enroll in the state CalSavers program if they don’t already offer retirement benefits. Employers pay nothing for CalSavers and have few responsibilities, but noncompliance can result in a fine of up to $750 per employee.

Jeff Hale and Dock Treece contributed to this article.

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Written By: Max FreedmanSenior Analyst
Max Freedman has spent nearly a decade providing entrepreneurs and business operators with actionable advice they can use to launch and grow their businesses. Max has direct experience helping run a small business, performs hands-on reviews and has real-world experience with business technology. At Business News Daily, Max covers accounting software, POS systems and digital payroll solutions, as well as leading medical software and text message marketing services. Max has written hundreds of articles for Business News Daily on a range of valuable topics, including small business funding, time and attendance, marketing and human resources.
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