Simple, Smart Small Business Retirement Plans
Simple, Smart Small Business Retirement Plans
For small businesses building big futures, Empower offers small business retirement plans to help you save on taxes today. Let's find your path forward.1
Our Small Business Retirement Plan Highlights
Our Small Business Retirement Plan Highlights
Beyond the comprehensive features, Empower Ready Select simplifies offering small business retirement plans. You can attract and retain top talent, potentially qualify for valuable tax credits, and benefit from integrated fiduciary support, making it easier to build a secure future for your employees and your business.
| Who is eligible? | Full and part-time employees |
| Employee contributions | Pre-tax and Roth included |
| Employer contributions | Company match and non-elective contributions available |
| Withdrawals | In-service withdrawal and loan available |
| TPA partners | TPAs that are part of the Empower Ready Select program. |
Existing 401(k) plans (up to $1M in assets) may be eligible for Ready Select if the current plan design fits this simple solution. Access our Empower Ready Select fact sheet for more plan details.
Empower Ready Select
Plan management expertise
Plan management expertise
Empower has partnered with some of the best third-party administrators (TPAs) in the industry that have extensive experience managing Empower retirement plans.
With Empower Ready Select, choose from one of several premier national or regional TPAs that are part of the Empower Ready Select program.
Instantly generate a proposal today
Instantly generate a proposal today
Empower Ready Select is available exclusively through the Empower Proposal System (EPS).
Take advantage of SECURE 2.0 tax credits, and address state mandates by offering an Empower retirement plan for small businesses.
Small business 401(k) plan vs. SIMPLE IRA
Small business 401(k) plan vs. SIMPLE IRA
Understanding the differences can help you decide if — and when — to make a change.
Understanding the differences can help you decide if — and when — to make a change.
401(k) | Simple IRA2 | |
|---|---|---|
Business size | Businesses of any size | Generally, businesses with fewer than 100 employees |
Employee annual contribution limits for 2025 | $23,000 | $16,500 |
Employee annual "catch up" contribution limits for 2025 (age 50-59) | $23,000 | $16,500 |
Employee annual "catch up" contribution limits for 2025 (age 60-63) | $11,250 | $5,250 |
Employee contribution options | Pretax and Roth contributions3 | Pretax and Roth contributions |
Employer contributions | Not required. Matching and nonelective contributions available. Vesting schedule options available. | Mandatory matching or nonelective contributions; immediate vesting required4 |
Loans | Available | Not available |
"Empower makes it easy and affordable to offer 401(k) plans for small businesses. Ready Select saves my clients time on administration and helps more employees access retirement than ever before.”
TPA
South Region
1 2023 PLANADVISER Retirement Plan Adviser Survey, as of February 2024.
2 Employers with 25 employees or fewer employees who received at least $5,000 of compensation from the employer for one or more years will have an increased employee contribution and catch-up rate of 110% of 2024 limits. This is indexed for cost-of-living adjustments in future years. If an employer with 25 or fewer employees increases its workforce to over 25, it shall be treated as if it has 25 employees for a two-year grace period (before providing a required notice to employees of the increased limits). Additionally, employers with 26-100 employees may elect each year to apply the higher limits described above but would be required to increase their match rate to 4% and 3% for their nonelective contribution rate. These increased rates only apply to employers who, during the preceding three-year taxable period (prior to the SIMPLE IRA being maintained), haven’t established a 401(a), 401(k), 403(a), or 403(b) plan where contributions were made, or benefits accrued, for substantially the same employees in the SIMPLE IRA.
3 Employee election to have a contribution made to a Roth IRA must be made before contribution is made. An employer cannot make a Roth contribution without employee affirmative election.
4 Employers may make additional non elective contributions in a uniform percentage (up to 10% but not to exceed $5,100) of compensation for each employee eligible to participate in the arrangement and who has at least $5,100 of compensation. The nonelective contribution is subject to the annual contribution limit of 401(a)(17) (e.g., $350,000). The IRA contribution limit increases to account for this nonelective contribution.
FOR FINANCIAL PROFESSIONAL USE ONLY.
Online advice and the managed account service are part of the Empower Advisory Services suite of services offered by Empower Advisory Group, LLC, a registered investment adviser.
EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser Empower Advisory Group, LLC.