Starter(k)
Starter 401(k)s make it simple and affordable to launch your first workplace retirement plan.
A simple start to workplace savings.
With auto-enrollment, preset plan design, and lower costs, Starter 401(k) plans help you meet employee expectations without the burden of traditional plans.
Easy to launch and administer
Starter 401(k)s eliminate many of the administrative complexities that come with traditional plans, like nondiscrimination testing, employer contributions, and custom plan designs.
Meet employee expectations
Most employees expect workplace retirement benefits. Starter 401(k)s help you stay competitive in hiring and retention by offering a simple way for employees to save through payroll deductions.
Low cost and high impact
With no employer contributions and simple administration, Starter 401(k)s offer a cost-effective way to deliver meaningful benefits, even for businesses just getting started. Plus, starting your retirement plan could be little to no cost with tax credits.
Designed to grow with you
Your plan can meet your business needs today and scale with you as you grow. As your business evolves, you can easily convert your Starter 401(k) into a traditional 401(k), adding features like an employer match or profit sharing when you’re ready.
“I don't have to do anything. Once the employees are in the system, my job is finished. I have never had to reach out with any questions. It’s great. It really is fire and forget.”
Learn more about 401(k) plans.
Offer your first retirement plan with confidence.
Starter 401(k)s are built for small businesses: low cost, easy to launch, and simple to manage as you grow.
FAQ
Businesses that don’t currently offer a retirement plan are eligible to start a Starter 401(k).
No. Starter 401(k) plans do not allow employer contributions. This makes plans cost-effective.
Yes. Employers must automatically enroll eligible employees between 3% and 15% of pay, with opt-out available.
Yes. Employees have the flexibility to increase their contributions above the default or decrease them, subject to the plan's rules and the annual contribution limits.
Yes. You can convert your Starter 401(k) to a traditional 401(k) later if you want to offer more features.
Unlock tax credits.
With the recent passing of Secure Act 2.0, new tax credits may be available to you, making a 401(k) plan with Vestwell even more affordable.¹
Lets see your potential savings!
If you start a qualified retirement plan with auto-enrollment, you may qualify to earn more than $150,000 in tax credits over a three-year period.
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The tax credit calculator is meant to be an estimate and it is provided for informational purposes only. It is based on credits that may be available to your business based on the current version of the Internal Revenue Code in effect and does not take into account potential changes to the tax credits that may be available to you that are currently under consideration. This calculator also does not take into account any other aspect of your business that may entitle your business to greater or fewer tax credits from starting or offering a new or existing retirement plan nor does it reflect any other fees or expenses associated with your plan. The tax credits that the Internal Revenue Service determines are available to your business could be materially different from the output of the tax credit calculator.