The Best Employee Retirement Plans for Small Businesses 2024

Human Interest is a dedicated employee retirement benefits provider that offers cost-effective and user-friendly services online. Fully automated plans – complete with full recordkeeping, administration and payroll integration – start at $120 per month, plus $4 per employee per month. Employers can choose from three plans – Essentials, Complete and Concierge – each with increasing levels of management.

Beyond the payroll integration and automated administration available through the Essentials plan, Complete provides administration, tax support and 3(16) fiduciary services. The Concierge plan includes all of these features, as well as access to dedicated account management. Human Interest also offers a wide range of investment options, including stock, bond and international mutual funds, as well as real estate funds and an FDIC-insured cash deposit account.

Paychex is an all-in-one HR, payroll and benefits solution that offers 401(k) and retirement services for businesses of all sizes. Small business owners can work with Paychex to build a customized retirement plan, including a traditional 401(k), an owner-only 401(k), a solo 401(k) for sole proprietors and SIMPLE IRA plans. Paychex helps small business owners simplify plan management, reduce the risk of reporting errors and save time for HR professionals.

As an added layer of convenience, Paychex has a mobile app that you can use to view your accounts. Through this app, you and your employees can check your investments and review contribution amounts, as well as access various other functions that generally are accessed via the desktop version.

Paychex also assigns each customer a dedicated team during onboarding to help them build, administer and troubleshoot a retirement plan tailored to the business’s unique needs. Unfortunately, like many of the employee benefits retirement providers we reviewed, Paychex does not disclose its pricing and fees online. You must contact the company to request a free quote, but this is easily accomplished online or via phone.

Paychex users also have the option of receiving financial wellness services through FinFit. With this program, employees can ensure they know where they stand regarding current financial obligations, which can help them decide how much they should be investing toward their retirement.

USA 401k is a small, independent retirement benefits provider that offers services through a subsidiary of MassMutual. Unlike other top employee retirement benefits providers, USA 401k offers extremely transparent pricing. What’s more, the company does not charge 12b-1 fees, exchange fees or minimum-balance fees.

Employers can choose either the New 401(k) plan, which is meant for businesses with one to 500 employees, or the Existing 401(k) plan, which is designed for companies with 501 or more employees. In general, New 401(k) is better for businesses that do not already offer a 401(k), while Existing 401(k) is better for those with an existing plan. Employees get access to concierge-level guidance throughout implementation as well as ongoing administration, and they can take advantage of payroll integration and assistance with compliance and reporting.

ADP stands out as the best employee retirement benefits provider for small businesses because of its comprehensive payroll, HR outsourcing and benefits services, all of which can be integrated through the company’s SMARTSync Comprehensive Plan Automation. ADP offers a basic 401(k) plan that requires business administrators to select and monitor the investment options that are available to employees, as well as the more robust 401(k) Essential plan. Investments range from stock and income mutual funds to specialty funds, including real estate and technology.

With the Essential plan, you can customize automatic enrollment options, employee eligibility requirements, contributions, vesting schedules and more. Alternatively, the standard 401(k) plan requires more active management by plan administrators, which may be too much work for many business owners, especially employers with a lot of employees or employers that don’t have dedicated HR teams. Regardless of the plan, employees get access to ADP’s mobile app, which makes it easy to enroll in benefits and choose investments.

As with many top providers, ADP does not publish its pricing online. However, you can contact the company via telephone or click the Start Quote button to begin building a small business retirement plan with a representative.

ShareBuilder 401k is a standout in the retirement benefits space because of its low fees. It specifically designs employer retirement plans with low-cost investment options to make sure that total investment fees remain under 1%. Plans start at $25 per month for solo 401(k) plans, plus 0.75% for plans with 11 to 25 participants and less than $500,000 in assets.

Another big benefit of ShareBuilder 401k is that the entire process of setting up and administering a small business retirement plan is digital. All paperwork and administration are automated, and it’s easy to oversee your account from anywhere. Additionally, ShareBuilder 401k recently expanded its ETF options to include environmental, social and governance (ESG) funds for the first time. We like that this expands the investment options for participants.

ShareBuilder 401k pairs you with a customer success manager to create a customized and detailed program that is tailored to your business’s and employees’ needs. From vesting schedules to employee education efforts, ShareBuilder 401k can help you build a complete program. This way, you can focus on the financial goals of both your business and your employees.

If you want to attract top talent with a competitive benefits package but you’re intimidated by the thought of implementing a retirement plan, Perfect401(k) may be the best fit. The company makes it easy for business owners to set up a retirement plan for their employees by assigning each business a designated implementation team that handles the plan design, enrollment and training.

The Perfect401(k) plan costs employers $375 per quarter ($1,500 annually) for 10 employees, plus $7.25 per additional employee each quarter. Employees are charged 0.67% or less of their account balance each month to cover the cost of mutual funds, investment consultation, educational tools and other management fees.

Fidelity is one of the largest privately owned financial services companies in the world. The firm provides a wide array of services, including individual retirement accounts and employer-sponsored retirement plans. Many of the IRA options can be opened without an advisor, including simplified employee pension (SEP) IRAs, which are a great cost-effective option for entrepreneurs. Accounts can be set up quickly and easily online.

Within these retirement accounts, particularly the IRA options, Fidelity customers get access to a full array of investment options. Users can trade U.S. stocks, ETFs and options for zero commission, and there are no annual fees for SEP IRAs. If you’re self-employed and want a retirement account you can set up online, Fidelity is a great option that has a well-deserved excellent reputation.

Guideline is a relatively new company that has a particularly strong safe harbor 401(k) offering. Safe harbor 401(k) plans are great for small business owners because they allow company owners to maximize their own contributions, even if not all of their employees participate in the plan. Business owners who use a traditional 401(k) instead may be prohibited from maximizing their contributions, because the IRS imposes limitations based on employee participation and contribution rates.

Because Guideline is an online option, it’s easy to set up and relatively cost-effective. The company’s basic plan starts at $49 per month, plus $8 per employee per month. Guideline’s other plans, which offer additional features, cost $79 and $129 per month. Employees are also charged additional account fees, but they are minimal: 0.08% annually.

As one of the oldest and largest mutual fund companies in the world, Vanguard offers a wide range of mutual funds and ETFs for account holders to choose from. The company also offers retirement services, including individual retirement accounts and some small employer-sponsored plans.

Vanguard shines because of its massive list of cost-effective investment options. Long considered the king of cheap investing, Vanguard has been helping individuals and small businesses save for retirement for more than 40 years. Of its actively managed funds, 86% have outperformed their peers over the past decade. What’s more, the average fund expense ratio at Vanguard is 84% lower than the industry average. Another bonus is that the minimum initial investment required to open a small business retirement account is the price of one share.