ShareBuilder 401k Issues Reminder as Important 401(k) Deadline Approaches, Offers Price Break to Businesses That Set Up New Plans in August & September

Small Businesses Starting Their First 401(k) Can Save Time, Money, and Testing by Launching a Safe Harbor 401(k) Before the IRS' Deadline of October 1

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ShareBuilder 401k

Aug 19, 2021, 06:00 ET

SEATTLE, Aug.19, 2021 /PRNewswire/ -- While August and September are well-known for vacations, Labor Day weekend and the start of school, they're lesser-known as the two-minute warning for businesses that want to start a hassle-free 401(k) plan that offers tax relief in the current year.

With this in-mind, ShareBuilder 401k - a leading provider of affordable 401(k) plans that are simple to set up online - is offering a reminder and special discount to any business with employees that sets up a new safe harbor 401(k) in the two months leading up to the October 1 government deadline.

Safe harbor 401(k)s feature a variety of benefits and savings for business owners seeking to lower taxes, save for retirement and help attract and retain top talent. The safe harbor plan design automatically satisfies IRS plan testing requirements and enables the option for any employee, including high earners, to maximize their 401(k) contributions. Businesses that miss the deadline - but still start a new plan - face additional monitoring, testing, and potential limitations on how much owners and other higher earners can contribute each year.

Starting today, ShareBuilder 401k is offering a $200 discount to businesses with employees that commit to a new plan by September 27 - representing the lead time needed to meet the October 1 safe harbor deadline.

"Many small businesses think they're too small to offer 401(k) benefits or that it might be too complicated or costly to get started," said Stuart Robertson, CEO of ShareBuilder 401k. "These are common myths as costs are minimal and tax deductible. Additionally, providers like ShareBuilder 401k offer all index funds that keep expenses for employees low - helping them keep more of their money in the market for retirement."

All 401(k) plans except Solo 401(k)s are subject to government tests to ensure the plan is serving the best interest of all employees and not just high earners. While matching isn't required to offer a 401(k) plan, a safe harbor 401(k) requires a company to provide an immediately vested match to automatically satisfy non-discrimination testing.

About ShareBuilder 401k
ShareBuilder 401k is a leading digital 401(k) provider specializing in low-cost, all-ETF retirement products and resources for small- to mid-sized companies, including owner-only businesses. Founded in 2005 and now serving more than 6,500 businesses across the US, ShareBuilder 401k is a pioneer of the index-based 401(k), digital quoting and purchasing of retirement plans, and providing investment management (ERISA 3(38)) services for every client's fund roster. ShareBuilder 401k is committed to further expanding access to retirement plans and leading more Americans to save through intuitive technology, low costs and quality education and support. More information on the company can be viewed online at: https://www.sharebuilder401k.com/

Contact: Dan Branley,
[email protected],
(206) 914-1231

SOURCE ShareBuilder 401k