Skip to main content

4 reasons to start a 401(k) today

Keep your business moving forward by offering a low-cost retirement plan.

minute read

Many businesses have been forced to rethink the products they offer, how they serve their customers and what it means to be part of a team. And employees are leaning into some of the new realities of work — virtual, contactless or spatially distanced.

This is the time to keep building on your progress. As your business moves ahead in a changing marketplace, you have an opportunity to strengthen your relationship with your most valuable asset — your employees. A 401(k) plan shows that you’re invested in your team’s long-term success.

Here are four reasons why now is a great time to offer a 401(k) at your company.

 

1. Talent matters more than ever

Creativity and efficiency are huge competitive advantages. The knowledge and experience that key employees bring to the table are exactly what your business needs to keep moving forward. It’s more important than ever to invest in people who understand your business, have ideas for growth and can jump in to get things done.

 

2. You can be a leader — for your employees and your industry

Benefits are important to high performers, especially as they start families or begin to think about retirement. The fact is, employees need help saving for retirement, and they’re looking to their employer for guidance. According to a recent survey, 76% want encouragement to save for retirement.

As a business owner, you know how hard it is to retain talent. A 401(k) plan can help you stand out, especially during challenging economic times. In fact, 82% of employers identified that retaining quality employees was an important goal for their retirement plan.

Including a 401(k) plan as a benefit can make a big difference in the lives of employees. Workers reporting they or a spouse are participating in an employer sponsored retirement plan are 2x more likely to be confident about their retirement.

 

3. Retirement plan costs are going down

Overall, total retirement plan costs have declined 5% since 2016, dropping slightly in each of the subsequent five years. For example, the new Everyday 401(k) by J.P. Morgan℠ starts at $75 per month plus $5 per month per employee. That means you can offer a team of five a retirement plan for as little as $100 per month.

When you factor in tax credits currently offered by the U.S. government, your costs can go even lower. Right now, a business can receive up to $5,000 per year in tax credits for the first three years after starting a 401(k).

 

4. It’s easy to get started

Everyday 401(k) offers simple solutions that allow you to set up your 401(k) online by selecting from ready-to-use plans. You also have the option to customize the plan even further to suit your needs.

 

Learn more about the Everyday 401(k) by J.P. Morgan

You can sign up for an Everyday 401(k) by J.P. Morgan plan online. Get started today.

 

Everyday 401(k) by J.P. Morgan is not an offering of JPMorgan Chase Bank, NA; clients will be directed to J.P. Morgan Asset Management, an affiliate.

This is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. By receiving this communication you agree with the intended purpose described above. Any examples used in this material are generic, hypothetical and for illustration purposes only. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with the advertising and marketing of products and services. JPMorgan Chase & Co. and its affiliates do not provide tax, legal or accounting advice. This material is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your personal tax, legal and accounting advisors for advice before engaging in any transaction.

Certain recordkeeping and related services for plans may be provided on behalf of JPMorgan Invest Holdings LLC (J.P. Morgan) by DST Retirement Solutions, LLC, a wholly owned subsidiary of SS&C Technology Holdings, Inc., neither of which are affiliated with J.P. Morgan.

If you are a person with a disability and need additional support in viewing the material, please call 1-800-343-1113 for assistance.

For informational/educational purposes only: The opinions expressed in this article may differ from those of other employees and departments of JPMorgan Chase & Co. Opinions and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendation for any individual. . Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.

JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender, ©2022 JPMorgan Chase & Co

Footnote1

J.P. Morgan Plan Participant Research, 2021.

Footnote2

J.P. Morgan Plan Sponsor Research, 2019.

Footnote3

Employee Benefit Research Institute (EBRI) and Greenwald & Associates, 2022 Retirement Confidence Survey.

Footnote4

401k Averages Book, using data collected on September 30, 2021.

Footnote5

Under Internal Revenue Code Section 45E, tax credits may be available to help you offset your first three years of plan startup costs in an amount equal to 50% of qualified startup costs paid or incurred, but limited to the greater of (1) $500 or (2) the lesser of (a) $250 for each non-highly compensated employee who is eligible to participate in the plan or (b) $5,000. In general, “qualified startup costs” are ordinary and necessary expenses of an eligible employer which are paid or incurred in connection with the establishment or administration of an eligible employer plan, or the retirement-related education of employees with respect to plan if the plan has at least one participant who is not a highly compensated employee.

Chase for Business links to Chase for Business home

Business Checking

Chase offers a wide variety of business checking accounts for small, mid-sized and large businesses. Compare our business checking solutions and find the right checking account for you.

Business Loans

Finance your small business with business loans from Chase. Find a variety of financing options including SBA loans, commercial financing and a business line of credit to invest in the future of your business.

Business Credit Cards

Find and apply for the Ink business credit card best suited for your business. Compare the benefits of the Ink business credit cards.

Payment Solutions

Accept debit and credit cards with safe, secure, and convenient Payment Solutions from Chase anywhere you do business – online, in-store, and on-the-go. Visit our Developer Center to find Payments APIs, developer tools, and documentation.

Business Savings

Chase offers a variety of business savings accounts including Total Savings, Premier Savings and a business CD. Compare savings accounts and find the right business savings account for you.

Business Debit Cards

More convenient than cash and checks — money is deducted right from your business checking account. Make deposits and withdrawals at the ATM with your business debit card. Save time every month with recurring payments.

Commercial Banking

Commercial Banking provides businesses with annual revenues ranging from $20 million to more than $2 billion with a range of domestic and international solutions including investment banking and asset management — designed to help you achieve your business goals.

Business Services

We’re here to help with your business banking needs. From payment processing to foreign exchange, Chase Business Banking has solutions and services that work for you.

Retirement Plans

Help your employees plan, save, and invest for their future with 401(k) plan solutions. J.P. Morgan’s low cost retirement plans are built for you and your employees.