Startup 401(k) Plans

Start a 401(k) That Fits the Business You Actually Run

For growing South Carolina employers ready to add a retirement plan — without inheriting someone else's template.

Who Should Consider a Plan

When starting a 401(k) starts making sense

There is no single right size. But a few patterns suggest a plan is worth exploring:

Employer Goals

What are you actually trying to accomplish?

Before choosing a provider, we get clear on what the plan is supposed to do for the business. The answer changes the design.

Provider Selection

Provider selection

Choosing the recordkeeper is one decision. Getting the whole stack — recordkeeper, TPA, custodian, payroll integration — to work as a unit is the real work. We evaluate providers against your census, payroll platform, expected growth, and the way you want employees to experience the plan.

TPA & Recordkeeper

TPA and recordkeeper roles

Bundled and unbundled arrangements each have trade-offs. Bundled is simpler and often cheaper below a certain plan size. Unbundled gives more flexibility for complex plan design. Neither is universally better — the right answer depends on the plan.

Match & Vesting

Employer matching and vesting

The match formula shapes participation more than almost any other design choice. Common structures include Safe Harbor match, Safe Harbor non-elective, and discretionary match with an ADP/ACP test. Each has cash-flow, testing, and retention implications.

Vesting schedules (immediate, cliff, graded) balance employee retention against the goodwill of employees who leave early.

Auto-Enrollment & Contributions

Automatic enrollment, Roth, and pretax

For plans established after December 29, 2022, SECURE Act 2.0 generally requires automatic enrollment starting in 2025 — with important exceptions for small and new businesses. Auto-enrollment materially raises participation and is worth designing intentionally, not defaulting to.

Both Roth and pretax deferrals should be available. Employee education helps participants pick the right one for their tax situation.

Payroll

Payroll integration

Payroll integration is where most plan errors start. We coordinate with your payroll provider on file feeds, deferral change handling, loan repayments, and termination handling from day one — not after the first correction.

Tax Credits

Tax-credit considerations

SECURE Act 2.0 expanded the tax credits available to eligible small employers starting a new plan. Depending on employee count and other factors, credits may cover startup administrative costs and a portion of employer contributions in the plan’s early years.

The credit math is meaningful, but eligibility rules are specific. We coordinate with your CPA to confirm what actually applies to your business.

Tax credits described are subject to eligibility rules and may change. This site does not provide tax or legal advice. Consult your tax advisor.

Employee Rollout

Employee rollout

A new plan lands with employees the way you introduce it. We build an employee communication plan (email, meetings, one-on-one office hours) that treats employees like adults making a real financial decision — because they are.

Ongoing Service

Ongoing service

After launch, the plan needs the same rhythms an existing plan needs — quarterly investment review, annual plan review, employee education on a set schedule, audit prep, fiduciary support.

Implementation Timeline

Typical implementation process

  1. 1

    Discovery

    Goals, census, payroll platform, budget. Confirm the plan is a fit.

  2. 2

    Design

    Match, vesting, Safe Harbor election, auto-enrollment, eligibility. Draft plan document with the TPA.

  3. 3

    Provider selection

    Evaluate recordkeeper/TPA options against your specifics. Written comparison.

  4. 4

    Setup and payroll integration

    Contracts, plan document adoption, payroll file setup, portal access.

  5. 5

    Employee rollout

    Communication, enrollment meetings, one-on-one office hours.

  6. 6

    First-year monitoring

    Quarterly investment reviews, first annual plan review, tax-credit filing coordination with your CPA.

Frequently Asked

Common questions from owners

How long does it take to set up a plan?

Ninety days is a reasonable working assumption, though faster is possible. Payroll integration setup and TPA plan document drafting are the two most common gating items.

What does the ongoing cost look like?

Ongoing costs include recordkeeper/TPA fees (paid by the plan or the employer depending on the arrangement), advisor fees, and any employer contributions. All fees are disclosed in writing before the plan is established.

Can owners defer more than the IRS limit?

The employee deferral limit is set by the IRS annually. Total contribution limits (including employer match/profit-sharing) are higher and vary by plan design. Age-50 catch-up is also available.

Do we have to offer a match?

Not required, but common. Safe Harbor plans require a specific match or non-elective contribution formula in exchange for exemption from certain nondiscrimination tests.

Discuss a Plan

Discuss starting a 401(k)

Send the basics below. Austin will follow up within one business day to schedule a thirty-minute intro conversation. An introductory conversation does not create an advisory relationship.

Your information is used only to schedule the introductory conversation and is not shared with third parties.