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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 for retirement.

    As a small-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, 84% of 401(k) plan sponsors stated that their plan has been effective in retaining quality employees.

    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 6.6% from 2016, dropping slightly in each of the subsequent six years. For example, Everyday 401(k) by J.P. Morgan℠ with enhanced administration services starts at $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), and may receive additional tax credits of up to $1000/eligible employee to offset the cost of employer contributions.


    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.

    Chase Bank, N.A. Member FDIC. ©2023 JPMorgan Chase & Co.  

    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 Vestwell Holdings, Inc.

    Vestwell Holdings, Inc. provides various fiduciary and non-fiduciary services on its proprietary recordkeeping platform to support tax-qualified retirement plans.  To learn more about Vestwell Holdings, Inc. and its services, please visit

    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, ©2023 JPMorgan Chase & Co.


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