401(k) retirement plans that exceed your business needs

Our starter 401(k) referred to as ADP Starter-k Complete has a $100 monthly base recordkeeping fee regardless of plan activity and is perfect for ultra-small businesses. For businesses of 1-4 employees, the monthly participant fee is $0. Once you meet 5 or more active participants, its $5 per participant, per month. This structure is designed to keep pricing predictable while the plan is being set up and maintained. Participant fees (when applicable) are billed based on the number of active participants at the end of the monthly billing cycle.

The $100 monthly base fee supports ongoing plan maintenance and core recordkeeping. With our ADP Starter-k Complete plan, recordkeeping services include Form 5500 filing, which states your plan meets retirement benefit responsibilities.

Some employers may choose add-ons or incur delivery-related costs depending on setup and preferences:

• SPS 3(38): $0 until the plan has assets, then $8.33/month (shown as $25/quarter) with a $100 annual minimum, plus an asset-based component referenced as 10 bps with a $100,000 threshold.
• Participant notices: $2.50 per mailing, and free if sending electronically.

For other plan types (such as a traditional 401(k), Safe Harbor 401(k), 403(b), SIMPLE IRA, SEP IRA, or a PEP), pricing typically varies based on factors like employee count, plan design, service model, and the level of compliance/administrative support needed. If you’re comparing options, the fastest path is to get pricing for the plan type that matches your business needs.

A 401(k) is a workplace retirement plan that lets employees contribute a portion of pay into an individual account. Contributions are generally made pre-tax (traditional) or after-tax (Roth, if available), and accounts can grow tax-deferred. Employers may also choose to contribute (e.g., match or other employer contributions) depending on plan design.

ADP Retirement Services supports several common workplace retirement plan types, including:

• 401(k) (traditional and Roth features, depending on plan design)
• Safe Harbor 401(k) (a 401(k) design intended to help satisfy certain nondiscrimination requirements)
• Starter 401(k)
• 403(b) (for eligible organizations)
• SIMPLE IRA
• SEP IRA
• Pooled Employer Plans (PEPs)

For employees, a 401(k) can make saving easier through payroll deductions, potential employer contributions (if offered), and tax advantages depending on contribution type. For employers, offering a plan can support recruiting and retention, reinforce a financial wellness benefit, and may help eligible businesses access available tax incentives (where applicable).

Employers are not federally required to offer a retirement plan. However, some states have retirement mandate programs that require eligible employers to either enroll in a state program or offer a qualifying private retirement plan. Requirements vary by state and business size..

Many small businesses compare:

• Starter 401(k) (streamlined structure)
• Traditional 401(k) (more flexibility as you grow)
• Safe Harbor 401(k) (can reduce certain testing concerns depending on design)
• SIMPLE IRA or SEP IRA (often simpler in some respects, with different contribution/design rules)
• PEP (for employers who prefer a pooled structure)

The right choice depends on many factors including the number of employees, whether you want to contribute as an employer, how much administration you want to manage internally, and how important plan design flexibility is as your business scales.

Yes. Small businesses — including very small employers — can offer a 401(k). Eligibility, setup steps, and ongoing administration vary by plan type and design. Many employers also prioritize solutions that connect contributions and eligibility tracking directly to payroll to reduce manual work.

A practical way to evaluate providers is to focus on operational fit and long-term usability:

• Plan administration & recordkeeping: contribution tracking, eligibility, vesting, participant activity
• Payroll integration: automated calculation and processing of contributions from payroll data
• Compliance support: nondiscrimination testing (as applicable), required filings, participant disclosures
• Participant experience: enrollment, contribution changes, investment selection, account monitoring via mobile/desktop
• Scalability: ability to support your plan as your workforce grows or becomes more complex

Retirement 401(k) plan administrators are responsible for the day-to-day operations and administrative tasks to ensure that retirement plans are compliant with regulations and help everyone on the plan enroll and save for retirement. They work with legal documents, analyze, test, and monitor the plan's operation.

Creating a 401(k) — sometimes called 'sponsoring a 401(k)' — involves a number of steps. Often times a plan provider will handle many of these steps for you. Activities required for establishing a 401(k) include selecting a plan, setting up a trust to hold plan assets, maintaining records of employee contributions and values, and providing information to plan participants. There are other administrative tasks as well like connecting your 401(k) plan contributions to your payroll process.