How much could a 401(k) match cost your business?
An employer match allows you to contribute to employee 401(k) plans. Match programs can help bolster your recruiting efforts and provide significant tax advantages.
Fill out your information to see how much an employer match could cost.
Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Employer match cost | $70,000.00 | $70,000.00 | $70,000.00 |
| Potential tax credits | -$31,500.00 | -$31,500.00 | -$23,625.00 |
| Total cost | $38,500.00 | $38,500.00 | $46,375.00 |
Hire faster & lower employee attrition
Retirement benefits make employees 40% less likely to quit their first year. Plus, 79% of employees prefer new or additional benefits over a pay raise.
May be added as part of a safe harbor plan provision
Reduce admin work by automatically passing some key IRS tests, while allowing plan participants to max out contributions.
Try it for the first plan year
If you decide to reduce or remove your match, you can easily do so since Human Interest never charges fees for plan amendments.
Human Interest can help boost your hiring and retain better employees at your company
An employer match may provide tax advantages
Employer contributions may be deducted from your employer federal income tax returns (as long as they don’t exceed a certain amount).
SECURE Act 2.0 added an employer match tax credit. Small businesses offering a new 401(k) with a match may qualify for tax credits of up to $1,000 per employee, per year for the first five years of the plan.¹
How Human Interest can help
Technology has helped streamline 401(k) plan administration. Rather than having to worry about the nuts and bolts of plans, Human Interest can help business owners like you reduce your administrative burden—no matter how much of an employer match you offer. Spend less time on back-end work and more time on running your business.
Who offers an employer match?
Most employers match a portion of their employee’s contributions. In fact, 75% of all Human Interest plans offer an employer match.²
As this implies, offering an employer match may help you stay competitive when recruiting and retaining employees.
Want to learn more about offering an employer match?
Use our Plan Cost Calculator to learn how other SECURE Act 2.0 tax incentives may help you start a Human Interest 401(k) plan.
Check out our FAQs to learn 10 important things employers should know about offering a match.
Click here to find the best service level for your business.