401(k) and Retirement Services

Make an informed decision on a retirement plan for yourself, your business, and your employees, and get help with recordkeeping and administration, so you can spend time more profitably.

Free Web Seminar

Understanding 401(k) Fee Disclosure

The Largest 401(k) Recordkeeper in America

Paychex has been a recognized leader in 401(k) recordkeeping for more than a decade. Most recently, we rank as the largest 401(k) recordkeeper in the nation, serving nearly 60,000 plans*. Use our deep knowledge and experience to help you choose and manage a retirement plan.

Plan Types

Paychex representatives give you the knowledge you need to choose a retirement plan and features, including auto-enrollment, Roth 401(k) and catch-up contributions, employer matching, vesting, and participant loans.

Retirement Readiness for Business Owners and Employees: 401(k) Automatic Enrollment
Type Free White Paper
Description Learn the benefits of 401(k) automatic enrollment for employers and employees and how to get started.
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Traditional 401(k)

The most common retirement plan, a traditional 401(k) encourages employees to save for retirement through pretax and Roth 401(k) contributions.

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Safe Harbor 401(k)

Automatically satisfies certain nondiscrimination testing, encourages employee participation, maximizes salary deferrals for high wage employees, and is simple to administer.

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Owner-Only 401(k)

Allows one-person businesses with no employees (except for certain family members) to maximize salary deferral contributions without compliance testing.

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Profit Sharing

Allows your company to divide discretionary contributions among employees. These contributions can be allocated using new comparability or other common methods.

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SIMPLE Plans

A Savings Incentive Match Plan for Employers (SIMPLE) plan makes it possible for companies with as few as two employees to establish a 401(k) or IRA.

View plan comparison.

Traditional
Safe Harbor
Owner-Only
Profit Share
SIMPLE

Feature	Traditional 401(k) and Owner Only	401(k) Safe Harbor	Profit Sharing
Can Amend to a Traditional 401(k)	N/A	Yes	Yes
Maximum Employee Deferral	$17,500*	$17,500*	N/A
Roth Contribution	Yes, within deferral limit	Yes, within deferral limit	N/A
Catch-up Contributions (for participants 50 or older)	$5,500*	$5,500*	N/A
Employer Contribution	Employer option	Matching contribution of 100%, up to 3% of compensation, and 50% of the next 2%, OR Non-elective contribution of 3% of compensation to all eligible participants	Lesser of 25%, of employee compensation or $51,000 per individual*
Vesting	Options available	Immediate (Safe Harbor contributions) Options available (Other contributions)	Options available
Loans	Yes	Yes	Yes
ADP/ACP Testing	Yes	No	No
Top-Heavy Testing	Yes	Generally satisfied	Yes
Investment Providers	Choice of many	Choice of many	Choice of several
Compatible with Money Purchase and Profit Sharing Plans	Yes	Yes	N/A
*Limit indexed annually by the IRS.

Investment Services

No matter which plan you choose, Paychex investment options allow you to work with an advisor or manage the plan yourself, so you'll receive as much investment planning and guidance as you need.

Pre-Defined Funds

Paychex works with some of the world's best-known investment providers to offer organized, pre-defined fund packages. These offer a simple and effective way to establish a retirement plan for your business.

Guided Funds

Through independent advisor GuidedChoice®, Paychex offers access to hundreds of mutual fund companies as well as investment planning, advice, and fiduciary protection in fund selection.

Visit GuidedChoice for more information.

Guidance for Participants

GuidedSavings from GuidedChoice® offers participants a Web-based tool to help manage risks and determine the savings rates and asset allocations needed to reach their retirement goals. A managed account option is also available.

Plan Trustee Services

Paychex plan trustee services can help put your mind at ease by assuming the fiduciary responsibility and liability for your plan assets.

Pre-Defined Funds
Guided Funds
Participants
Plan Trustee

Retirement Administration and Recordkeeping

Paychex is a full-service retirement plan provider with robust recordkeeping and plan management services for your business.

Payroll Integration

Paychex can integrate 401(k) data with Paychex Payroll to greatly simplify plan administration, while helping ensure the accuracy of your participants' information.

Web Access & Phone Support

Paychex provides 24-hour plan access through the Paychex Retirement Services Website. Toll-free phone assistance is also available. View minimum requirements.

Forms & Documentation

Paychex prepares federal Form 5500 annually and Forms 1099-R and 945 as required, as well as all required legal documents, including the corporate resolution, adoption agreement, and Summary Plan Description.

Compliance

Paychex performs daily valuations on all account balances, performs quarterly nondiscrimination testing, and provides vital management reports and participant statements.

Loans

Paychex models and manages any loans on your participants' retirement account assets.

Payroll Integration
Support
Documents
Compliance
Loans

*PLANSPONSOR magazine

Employee Benefits