Choose a Retirement Plan to Fit Your Needs

You will likely consider many factors when choosing a retirement plan for your business. When it comes to the plan you will offer and your investment options, Paychex has you covered. We offer a range of customizable options for you, your employees, and your business.

Retirement Plan Types

Pick a plan and plan features with more confidence. Options include auto-enrollment, Roth 401(k) and catch-up contributions, employer matching, vesting, and participant loans.

Traditional 401(k)

One of the benefits of a 401(k) plan for employees is that they can save for retirement through pretax and Roth 401(k) contributions. You have the option to match part or all of the employee’s deferrals.

Safe Harbor 401(k)

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

Owner-Only 401(k)

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

Profit Sharing

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

SIMPLE IRA

A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) provides a solution that allows employees and employers to contribute to traditional IRAs set up for employees.

Compare Retirement Plans

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

$18,000*

$18,000*

N/A

Roth Contribution

Yes, within deferral limit

Yes, within deferral limit

N/A

Catch-up Contributions (for participants 50 or older)

$6,000*

$6,000*

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 $53,000 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 Selection

No matter which retirement plan type you choose, our investment options allow you to work with an advisor or manage the plan yourself — so you decide how much planning and guidance you need.

 

Make It Simple – Choose from preselected fixed menu options from nationally recognized investment providers with our Fixed Fund Select.

 

Get Help – With Guided Fund Select we offer services from third party experts who will select, monitor and replace as needed your plan's investments—reducing your fiduciary liability. 

 

Choose Your Own – Our Open Fund Select offering gives you control with access to thousands of investment options from various investment companies and allows you to use an advisor of your choice.

Guidance for Participants

An independent advisor can offer participants online tools and personal advice to help manage risks and determine the savings rates and asset allocations needed to reach retirement goals.