It’s no secret that employer-sponsored retirement plans help businesses attract and retain workers. However, finding affordable 401(k) management companies is challenging. The top retirement plan providers offer low-cost 401(k) programs, SIMPLE IRAs, and defined benefit plans for small business owners. These firms stand out for their transparent fee structures and support services.
Top retirement plan companies can help you qualify for the retirement plan tax credit while keeping administrative costs low. Check out the best retirement plans for small business owners with employees, including a 401(k) providers list and self-employment IRA options.
Simplified Employee Pension (SEP) IRA providers
Any size company, including sole proprietorships, can establish a Simplified Employee Pension (SEP) Individual Retirement Account (IRA). This employer-funded retirement plan is popular because it’s easy to set up and less expensive to maintain than 401(k) programs. However, some SEP IRA providers only offer self-employed SEP IRAs and SEP plans for five or fewer employees.
Choose the best place to open a SEP IRA for employees by looking for low or no-fee options and extensive fund selections. The following SEP IRA companies offer various types of retirement plans.
[Read more: Understanding Employee Retirement Plan Options]
Charles Schwab
Charles Schwab SEP IRA plans don’t require a minimum opening deposit and have zero setup or maintenance fees. Employers can download forms online, and employees can enroll online or through the mail. Charles Schwab SEP IRA accounts offer a vast fund selection and 24/7 customer support. To learn more, see Charles Schwab SEP IRA.
- Other small business retirement plans for employees from Charles Schwab include SIMPLE IRA, personal defined benefit plans, solo 401(k), solo Roth 401(k), business 401(k), and pension trust accounts.
Fidelity
Fidelity SEP IRA plans cater to small businesses and self-employed owners with five or fewer employees. It offers two Fidelity SEP account options: a self-managed SEP IRA or Fidelity Go for automated investing. Neither version requires a minimum amount to open a SEP IRA. Fidelity SEP IRA fees apply to Fidelity Go accounts once balances reach $25,000. Visit Fidelity SEP IRA to compare SEP plans.
- Additional employer-sponsored retirement plans from Fidelity include self-employed 401(k), PEP 401(k) for small business, and SIMPLE IRA.
T. Rowe Price
T. Rowe Price SEP IRA plans have no setup costs, and the $20 annual participant fee is waived if you subscribe to paperless statement delivery or maintain balances above a certain amount. Investors can choose from more than 150 no-load mutual funds. Explore T. Rowe Price SEP IRA plans.
- Other small business retirement options from T. Rowe Price include SIMPLE IRA, solo 401(k), and business 401(k) plans.
SIMPLE IRA companies
Solopreneurs and companies with 100 or fewer employees may be eligible for Savings Incentive Match Plan for Employees (SIMPLE) IRA plans. This retirement savings account has low fees, no annual Form 5500 reporting requirements, and an easy setup process. Plus, you may qualify for the retirement plan credit. To help you find solutions, here are a few of the best SIMPLE IRA providers for small businesses.
[Read more: How to Offer an Employee Retirement Plan]
Merrill Edge
When you open a Merrill Edge SIMPLE IRA online, your business pays no setup or annual administrative fees. Investments include ETFs, stocks, bonds, options, and mutual funds. Merrill provides an automated investment program and a free small business service to simplify contributions to employee retirement accounts. Explore Merrill SIMPLE IRA plans.
- Other small business retirement plans from Merrill include SEP IRA and individual and business 401(k) plans.
Capital Group
Capital Group offers two SIMPLE IRA plans for small businesses with American Funds investment options. The standard SIMPLE IRA plan costs $10 to set up and $10 annually. SIMPLE IRA Plus provides additional services and costs $25 upon enrollment, then $25 yearly.
Participants can add Roth after-tax deferral contributions starting in 2025 with a SIMPLE IRA from Capital Group. Compare your retirement plan options for a Capital Group SIMPLE IRA.
- Additional employer-provided retirement plans from Capital Group include SEP IRA, payroll deduction IRA, and PEP 401(k). In addition, Capital Group American Funds are available through many 401(k) management companies.
Ascensus
Ascensus recently assumed Vanguard’s owner-only 401(k), multi-SEP, and SIMPLE IRA plans. Former Vanguard and new Ascensus retirement services clients can choose Vanguard funds through the Ascensus platform. SIMPLE IRA plans don’t have setup fees.
Custodial services cost $20 per participant annually, and account holders pay $25 yearly per Vanguard fund. Account minimums vary by fund. Learn more about the Ascensus SIMPLE IRA.
- Other Ascensus retirement services include individual 401(k), business 401(k), MEP 401(k), PEP 401(k), defined benefit plans, SEP IRA, profit-sharing, and non-qualified deferred compensation programs.
While payroll deduction IRAs lack the popular appeal of traditional retirement savings programs, these plans are the most straightforward arrangements for businesses.
401(k) plans for small companies
Finding low-cost 401(k) retirement plans for employees is challenging, especially for small businesses. One option is partnering with a professional employer organization (PEO). It gives companies access to the largest retirement plan providers with the best 401(k) plans.
The top 401(k) companies design 401(k) plans for small businesses with tiered pricing models, which can lower costs. In addition to traditional 401(k) plans for small companies, some financial services firms offer pooled employer plan (PEP) or multiple employer plan (MEP) 401(k) options. Explore employer retirement plan options from the following small business 401(k) providers.
[Read more: How to Set Up a Small Business 401(k)]
Paychex
Paychex is a top 401(k) plan provider offering retirement plan administration, employee benefits, and payroll processing services. Advisors help owners design their 401(k) program, and participants can choose from thousands of investment options.
Paychex has owner-only and pooled employer 401(k) plans, which integrate with Paychex Flex, its HR and payroll processing system. To learn more and receive a quote, check out Paychex retirement services.
- Alternatively, Paychex PEO services include Fortune 500–level benefits, workers’ compensation coverage, human resources (HR), payroll, and risk management.
ShareBuilder 401k
ShareBuilder 401k is an online 401(k) provider for self-employed and small and medium-sized business owners. It offers diverse index exchange-traded funds (ETFs) and several model portfolios for different risk styles. You can choose from Safe Harbor, traditional, tiered profit sharing, and solo 401(k) options.
Employer 401(k) plans start at under $100 monthly, and investment expenses cost less than 1%. There is a one-time setup fee and annual fund fees range from 0.04% to 0.39%. With ShareBuilder 401k’s automatic pricing discounts, the investment and monthly fees decrease as your plan’s assets grow. View ShareBuilder 401k plans.
Guideline
Guideline is a small business 401(k) provider offering Safe Harbor, traditional, starter, and solo 401(k) plans. The service integrates with top payroll providers, including OnPay, Gusto, and QuickBooks. Guideline 401(k) plans for small companies are fully managed, and the services cover annual report preparation and filing.
Guideline 401(k) pricing ranges from $39 to $149, plus $4 to $8 per active employee, and participants pay annual account fees, ranging from 0.15% to 0.35%. To learn more, check out Guideline’s 401(k) plans.
- In addition to small business retirement plans for employees, Guideline offers SEP IRA plans for self-employed owners and individual traditional and Roth IRA accounts.
ADP
ADP offers outsourced HR, payroll processing, benefits, and retirement services. It has three 401(k) plan tiers to support different-sized businesses, and all versions integrate with ADP payroll. ADP doesn’t disclose its 401(k) program fees online, although you can use a calculator to understand your initial costs. Explore ADP’s retirement planning services.
- Alternatively, ADP TotalSource PEO services offer workers’ compensation coverage, payroll and tax support, HR, hiring and retention assistance, and comprehensive employee benefits.
Human Interest
Human Interest is a full-service 401(k) plan provider for small and mid-sized employers. It offers fully managed traditional, solo, and safe harbor 401(k) plans. The retirement program integrates with over 500 payroll processing systems, including ADP, Rippling, and TriNet.
Human Interest 401(k) pricing starts at $120 monthly plus $5 per eligible employee. It deducts monthly advisory, recordkeeping, and custody-related fees of 0.06% of plan assets. Check out Human Interest 401(k) plans for more details.
- Aside from 401(k) plans for small businesses, Human Interest offers personal Roth and traditional IRA plans.
Employee Fiduciary
Employee Fiduciary provides 401(k) plan services for small businesses and self-employed owners. The bundled retirement programs include administration and recordkeeping services. You work with Employee Fiduciary to design a 401(k) plan, from deciding if you need a safe harbor 401(k) to reviewing optional contribution schemes like matching or profit-sharing contributions.
The base fee for a small business 401(k) plan with 30 employees is $1,500 annually plus 0.08% of plan assets. Explore Employee Fiduciary 401(k) plan services.
Roth 401(k) providers
Small business Roth 401(k) plans can help your company attract diverse talent and retain highly paid team members. Instead of upfront tax savings, a Roth 401(k) provides tax-free retirement withdrawals. Some retirement plan providers offer traditional 401(k) plans with the option to split contributions between pre-tax and Roth methods.
Still, Roth 401(k)s have higher contribution limits than Roth IRAs and no annual income restrictions. Check with your brokerage to see if employees can split their contributions or consider a top 401(k) provider for small businesses.
[Read more: Is Your Company Offering Top Financial Wellness Benefits?]
Fisher Investments
Fisher Investments specializes in small business 401(k) retirement plans. It offers custom Roth 401(k) programs and traditional plans with Roth contributions. Fisher Investments is an advisory service that could provide a more hands-on approach to investing. The tiered advisory fees are based on portfolio size, and the firm doesn’t accept fund commissions. Learn more about Fisher Investments retirement plans.
Profit-sharing plans
Rewarding employees when your business is profitable can boost workplace productivity. You can set up a profit-sharing plan as a defined contribution retirement program similar to 401(k) accounts, except only employers contribute. Different companies administer profit-sharing plans, including employee retirement providers, pension plan administrators, financial advisors, and third-party administrators (TPAs).
[Read more: How PEO Services Can Enhance Your Employee Experience and Retention]
Payroll deduction IRAs
With a payroll deduction IRA, your employees establish a traditional or Roth IRA with their bank, credit union, or online financial service. Then, they authorize a payroll deduction amount, and the employer sends it to their financial institution or payroll processing service.
While payroll deduction IRAs lack the popular appeal of traditional retirement savings programs, these plans are the most straightforward arrangements for businesses. Any sized company, including self-employed individuals, can establish a payroll deduction IRA. Only employees contribute, and employers don’t have any filing requirements.
Defined benefit plans
Defined benefit plans, such as pensions, provide employees with fixed retirement amounts (defined benefits). Although workers value this retirement savings option, it’s more expensive to set up and maintain than other benefits programs. The company is responsible for handling the investments and risks. Investment firms and TPAs can help your small business establish a defined benefit plan.
[Read more: How to Plan for Retirement as an Entrepreneur]
Annuities
With 76% of respondents to a Greenwald Research survey concerned about running out of money during retirement, the guaranteed lifetime income stream offered by annuities could be a solution. Employers can provide qualified employee annuity plans as part of a 401(k), pension plan, or standalone option.
Employee retirement providers, like 401(k) administrators, may offer annuities, or you can purchase them from life insurance companies, mutual fund businesses, brokerage firms, or banks.
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