Take advantage of increased tax incentives or ADP's FREE retirement plan review.
A value-added provider
With flexible, customizable retirement plan options, a reputation for exceptional service, and advanced technology that makes plan administration easy, it’s no wonder companies like Amazon trust ADP to provide innovative, secure, retirement solutions.
Small business retirement plans work best when personal data informs decision-making. ADP’s proactive
approach delivers everything you need to manage your plan and help employees meet their goals.
Seamless Connections
Integrate retirement plan services with payroll to make recordkeeping easy and accurate
Flexible options
Make choices that are right for your business today and tomorrow
Personalized Insights
Empower employees with personalized insights and smart tools for planning and saving
Rock-solid security
Sleep easy, 1 million businesses trust ADP and have for over 75 years
SECURE 2.0 Act Tax Credit Calculator
Discover your potential savings with SECURE 2.0
Offering a 401(k) plan is more affordable for small businesses than ever, thanks to new tax credits introduced by the SECURE 2.0 Act.
You could be eligible for an estimated
in tax credits over the plan's first 5 years!
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Total Record-keeping Fees† | |||||
| SECURE Start-up Tax Credit | |||||
| Automatic Enrollment Credit | |||||
| Estimated 401(k) Start-up Cost | |||||
| Matching Contributions Credit |
You want options.
We have them – from our screened investment tiers to our Open Architecture with over 13,000 funds.
You want smart tools.
A leader in innovative and easy-to-use technologies, ADP helps you by reducing retirement plan service administrative tasks, managing compliance, and flagging issues before they become problems.
ADP® Retirement Plan Services Capabilities
60% of workers consider retirement plans a “must-have” benefit.1 See how ADP can help you create a plan that both attracts top talent and is easy to manage.
If your business is in one of these states – CA, CO, CT, DE, HI, IL, ME, MD, MN, NV, NJ, NM, NY, OR, RI, VT, VA – legislation may have been enacted mandating state-run employee savings programs. You have options! Download our free guide or talk to a retirement specialist today.
With ADP Retirement Services, you’ll get a team of experienced retirement professionals who are ready to help you evaluate your options:
401(k) retirement plan services and investment choices
A 401(k) is a qualified profit-sharing plan that allows employees to contribute a portion of their wages to an individual account. You can also contribute to employees’ accounts — this is often done through a match of what an employee contributes.
If you choose a 401(k) plan, you’ll need to decide which investment options your employee can choose to invest in. Whether your advisor is providing investment advisory services, or you are considering hiring a third party for this support, ADP can accommodate either approach.2
Our retirement plan solutions meet the unique needs of your business — no matter how many employees you have. See which fit is right for you.
SIMPLE IRA options for small businesses
Both employees and employers can contribute to a SIMPLE IRA (Savings Incentive Match Plan for Employees). Employee contributions are tax-deferred and employers must make either a matching contribution or a nonelective contribution.
This type of plan can be an attractive option for small businesses since it requires:
Administrative fees can be as little as $600, and you may qualify for a tax credit for start-up administrative costs. Plus, you can deduct annual employer contributions to the plan as a business expense.3
For more information about SIMPLE IRAs, contact us.
SEP IRA options for self-employed individuals and small business owners
If you are self-employed or a small business owner, you can make tax-deferred and tax-deductible employer contributions to a SEP-IRA plan for each employee.
SEP IRAs provide key benefits to business owners:
To learn more about SEP IRAs, contact us.
About 50 percent of employees save less than $5,000 per year for their retirement.4 When employees understand their retirement plan benefits, they’re more likely to enroll and use those benefits to their full potential.
Get your employees on the right path to retirement with helpful tools and resources, including:
With 2 in 3 employees claiming their benefits package helps reduce financial stress5, our award winning participant materials, and retirement calculators and tools will be appreciated.
The Maryland Association of CPA’s discuss their experience with ADP Retirement Services and why they chose ADP as their retirement plan provider.
Tom Hood,
Exec. VP Business Growth & Development
AICPA
You may be able to offer various retirement plans to your employees-401(k)s, IRAs, pension plans, and profit-sharing plans all with different features and benefits.
Offering retirement plans to your employees can attract top talent, enhance employee satisfaction, and potentially provide tax benefits for your company, all while helping employees save for the future.
The SECURE 2.0 Act proposes updates to retirement plans, aiming to grow participation, increase individual retirement savings, and improve retirement income by impacting participant options.
Qualified retirement plans offer employers the ability to take tax deductions on contributions to the plan; they offer employees the opportunity to save in a trust on a tax-deferred basis. Nonqualified plans also present tax deferral opportunities to employees but generally offered only to a select group of management employees; moreover, employees' contributions are not placed in a trust and are considered assets of the employer.
Employer matching contributions are not mandatory. However, many employers do offer an employer contribution match to encourage employee participation, attract and retain talent and to leverage as a tax advantage for their business.
Resources and insights
insight
insight
*Business.com article "Best Business Employee Retirement Plans for 2024" Published May 2, 2024
† This calculator is for illustration purposes only and should not be construed as tax advice. Please consult with your own tax professional for advice.
Monthly Investment Service Fee: ADP Strategic Plan Services, LLC will impose a fee of .10% of covered assets, subject to a minimum fee of $30 per month, as more further described below.
The amount of the tax credit each year is limited. Employers with up to 100 employees may be entitled to an annual tax credit for three years equal to 50% of the costs of starting up and administering a retirement plan and for participant education services. Employers with 50 employees or fewer may be entitled to 100% of the costs for these services. The maximum credit is up to the greater of (1) $500 or (2) the lesser of (1) $5,000 or (2) $250 multiplied by the number of non-highly compensated employees eligible to participate in the plan. An additional credit of $500 per year for the first three years is available to plans that offer an automatic enrollment feature that meets the requirements of an Eligible Automatic Contribution Arrangement (EACA) as defined in Internal Revenue Code Section 414(w)(3.) The maximum credit over 3 years of $16,500 is available to plans that cover at least 20 non-highly compensated employees and offer automatic enrollment.
Additionally, an annual tax credit for eligible employer contributions for five years of up to $1,000 per employee earning $100,000 or less may apply to employers with up to 50 employees but phases out from 51 to 100 employees.
The availability and amount of a tax credit depends on your situation. ADP does not provide tax advice, and you should consult with your own tax professional.
Retirement Counselors are registered representatives of ADP Broker-Dealer, Inc. (ADP BD), Member FINRA, an affiliate of ADP, Inc., One ADP Blvd, Roseland, NJ 07932.
SIMPLE IRA and SEP are offered through ADP Broker-Dealer, Inc. (ADPBD), Member FINRA, an affiliate of ADP, Inc, One ADP Blvd, Roseland, NJ 07068. Only registered representatives of ADPBD may offer and sell such retirement products and services or speak to retirement plan features and/or investment options available in any ADP retirement product. Unless otherwise agreed in writing with a client, ADP, Inc. and its affiliates (ADP) do not endorse or recommend specific investment companies or products, financial advisors or service providers; engage or compensate any financial advisor or firm for the provision of advice; offer financial, investment, tax or legal advice or management services; or serve in a fiduciary capacity with respect to retirement plans.
Unless otherwise disclosed or agreed to in writing with a client, ADP, Inc. and its affiliates (ADP) do not endorse or recommend specific investment companies or products, financial advisors or service providers; engage or compensate any financial advisor or firm for the provision of advice; offer financial, investment, tax or legal advice or management services; or serve in a fiduciary capacity with respect to retirement plans. Investment options are available through the applicable entity(ies) for each retirement product. Investment options in the “ADP Direct Products” are available through either ADP Broker-Dealer, Inc. (ADP BD), Member FINRA, an affiliate of ADP, Inc., One ADP Blvd, Roseland, NJ (ADP BD) or (in the case of certain investments) ADP, Inc. Only licensed representatives of ADP BD or, in the case of certain products, of a broker-dealer firm that has executed a marketing agreement with ADP, Inc. may offer and sell ADP retirement products or speak to retirement plan features and/or investment options available in any ADP retirement product and only associated persons of ADP Strategic Plan Services, LLC (SPS) may speak to any investment management or advisory services provided by SPS or any third party in connection with such ADP retirement products. SPS is a SEC Registered Investment Adviser. Registration does not imply a certain level of skill or services. Nothing in these materials is intended to be, nor should be construed as, advice or a recommendation for a particular situation or plan. Registered representatives of ADP Broker-Dealer, Inc. do not offer investment, tax or legal advice to individuals. Please consult with your own advisors for such advice. ADPRS-20230629-4643
