Planning for a Brighter Future
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The Benefits of Starting a Retirement Plan
Paychex Integrated Services
Benefits Administration
Time & Attendance
Payroll Administration
HR Administration
Hiring & Onboarding
Recruiting & Applicant Tracking
Health Insurance Management
SECURE Act*† benefits
Attract and retain quality employees
Help employees save for tomorrow (including yourself)
Individual and business tax savings
Why Consider a 401(k) Plan?
1.
2.
* Setting Every Community Up for Retirement Enhancement (SECURE) Act
† New plans, up to $5,000/yr. for the 1st 3 years, additional $500/yr. for the 1st 3 years with auto-enrollment.
The Advantage of a Pooled Employer Plan (PEP)
2025 IRS 401(k) Limits
Safe Harbor Employer Contributions
2025 IRS 401(k) Limits: Pooled Employer 401(k) Plan (PEP)
Employer Profit Sharing
Employer Matching Contribution
Employee Contribution
(Optional) 100% tax deductible*
Employer Match
Up to $31,000 if age 50–59; up to $34,750 if age 60–63)
1%-92% of Paycheck, up to $23,500
(Optional each year) 100% tax deductible*
Non-Elective Employer Contributions
$70,000 per participant (up to age 49) |$77,500 (age 50–59) | $81,250 (age 60–63)
Pooled Employer 401(k) Plan
1% 2% 3% 4% 5% 6%
Basic Match Auto-Enrollment
(2-Year or Immediate Vesting)
Employee
Employer
1% 1.5% 2% 2.5% 3% 3.5%
1% 2% 3% 3.5% 4%
1% 2% 3% 4% 5%
(Immediate Vesting)
Basic Match No Auto-Enrollment
1% 2% 3% 3.5%
1% 2% 3% 4%
Enhanced Match Auto-Enrollment
4% Enhanced Match No Auto-Enrollment
3% of compensation; all eligible employees receive 3%, including those who do not contribute via salary deferrals
(NEC)
Non-Elective Contribution
The maximum annual contributions allowed are the lesser of either the participant’s total eligible compensation in the PEP or $70,000 for the plan year. The maximum employer contribution amount is 25% of full-year wages of plan participants during each tax year. The amount includes all of the adopting employer's contributions made to the PEP 401(k) plan, excluding forfeiture contributions.
Match chart
(2-year or Immediate Vesting)
3% of compensation All eligible employees receive 3%, including those who do not contribute via salary deferrals
2
1
Generation Z
Millennials
Generation X
Baby Boomers
$194,000
$93,000
$50,000
$40,000
$100,000
$150,000
$200,000
$250,000
As of late 2023, workers have saved $64,000 (estimated median) in total household retirement accounts.
A 401(k) Is a Highly Desired Benefit
Today's Workers Want a Brighter Future
of employees are interested in a 401(k) plan, second only to health insurance.*
agree that the next time they look for a job, all things being equal, the retirement benefits offered by the prospective employer will be a major factor in their final decision to accept an offer or not.**
of employees say it is important employers help support their financial health.*
94%
76%
4 5
Workers
in
See Why a 401(k) Is a Highly Desired Benefit
See the 2023 Total Household Retirement Savings
Today's Workers Want a Brighter Future Too
* Source: Non-Profit Transamerica Center for Retirement Studies, 24th Annual Transamerica Retirement Survey of Workers, June 2024.
* 2020 Small Business Employee Study December 2020, A joint study conducted by ClearlyRated and Paychex. ** Non-Profit Transamerica Center for Retirement Studies. 21st Annual Transamerica Retirement Survey of Workers. August 2021. Usage rights on file.
Retirement Calculator
ExplorE
These calculations are provided for illustrative purposes only and should only be used as a guideline. They are not representative of past or future performance and not a replacement for professional financial planning advice. Actual investment results will vary. Paychex and its affiliates do not offer investment or tax advice.
Waiting Is Costly: Start a Retirement Plan
• 35-year-old business owner • Has not started to save for her retirement — plans to retire at age 65 • She decided to wait — salary deferrals and company match would've amounted to $12,000
Let's look at a hypothetical example:
Start saving today and retire in 30 years
Wait one year and retire in 29 years
$837,129
$785,266
A difference of
$51,863
* Assumes a 5% annual return. There is no guarantee that this rate of return will be achieved.
As a Trusted Provider, We're Here to Help!
401(k) Plans Uses Paychex
1 in Every 6
Best Small Business- Focused Solution
Companies
-Forbes Magazine
Most Innovative
One of the World's
-Ethisphere Institute
Most Ethical
The leading 401(k) plan provider in the nation*
120,000 Plans
OVER
and Counting
Serving Over 1.2M Participants
*By 401(k) participating employer count as validated by publicly available information for calendar year 2023.
Maximize the Efficiency of Your 401(k)
Current State You, as the plan sponsor and legal fiduciary on your retirement plan, have several tasks to coordinate. You must send sensitive employee, payroll, and retirement data to multiple companies that may or may not protect your information.
Without Payroll Integration
Separate Systems Model
Bank
Payroll
Recordkeeper /TPA
IRS/DOL
Investment Provider
Participants
The Value of Payroll Integration Paychex Retirement Services protects your business by simply and securely integrating, communicating, and reporting employee, payroll, and retirement data in our all-in-one payroll and 401(k) platform, Paychex Flex®. We value partnership. If you currently work with a financial advisor, we will work with them on your behalf.
With Payroll Integration
Paychex 360° Platform
Paychex Flex® Recordkeeper + Third Party Administration + Payroll
Paychex 360° Platform With Payroll Integration
Separate Systems Model Without Payroll Integration
Access Your Plan How You Want
Try One of these Helpful Demos
pARTICIPANT pORTAL
Quick Enrollment
Paychex Flex
• Up to $5,500 per year in tax credits* - new plan with auto-enrollment
The SECURE Act Provides Eligible Employers:
Many 401(k) Plans Qualify for Tax Credits
To see what your business may qualify for, please refer to our SECURE Act Tax Credit Estimator.
* Potential SECURE Act tax credits include: $5,500/yr. for the first 3 years for new plans with auto-enrollment and up to $1,000/yr. per employee for 5 years with employer matching for businesses with less than 50 employees.
• Up to an additional $1,000 credit per employee with employer contributions*
Training Discrepancies
Employee Morale
Productivity
Hiring Expenses
Can You Afford to Lose Employees to Companies With a 401(k)?
Examples of How Turnover Impacts a Business's Profitability*:
* Source: Indeed.com. "The Real Turnover Cost of Losing an Employee (And Ways To Retain More Talent)." December 2021. Usage rights on file.
We Have a Future to Create Together
Let's Get to Work
Single Employer Plan Appendix
Additional Resources
General Appendix
Tools
Trusted Provider
PEP Safe Harbor Employer Contributions
Turnover Costs
Feedback
4% Enhanced Safe Harbor Match
4% Standard Safe Harbor Match
(2-Year Vesting)
QACA 3.5% Auto-Enrollment
Single Employer 401(k) Plan
Determine the average cost of employee departures
How to Understand the Impact on Your Business
Calculate voluntary departures
Think of other impacts of employee turnover
4
Use a turnover cost calculation
3
for Excellence in Technology
-Brandon Hall Group
Gold-Medal Award
Serving Over a Million Participants in 2022
Largest Recordkeeper
in America by Number of Defined Contribution Plans*
1 Paychex, Inc. 100,137
2 3 4 5 6 7 8 9 10
ADP Retirement Services Empower Capital Group Ascensus Voya Financial John Hancock Principal Financial Group Newport Fidelity Investments
70,033 67,476 63,035 52,391 51,905 51,610 45,754 39,959 34,361
PEP Pricing Sheet
PEP Micro Pricing Sheet
As a Trusted Provider, We Are Here to Help!
Tax Credit Estimator
• What works for you in this presentation? • What doesn't work? • What else would you like to see? • And any other feedback you'd like to share?
Your Marketing partners would like your feedback on the following:
Sales Partners, We Want to Hear From You!
Send feedback to: jgalgay@paychex.com
* Largest recordkeeper in the U.S. by number of plans as ranked by PLANSPONSOR magazine, 2021
(Up to $31,000 if age 50–59; up to $34,750 if age 60–63)
AICPA Plans for Firms
The AICPA Plans for Firms Program
We Partner with You
Paychex Pooled Employer 401(k) Plan (PEP)
Standard 401(k) Plan
Plans Comparison Chart
$100/month administrative fee
Feature
Plans for Firms 401(k) Pooled Employer Plan
Comparison of Plans
• $100/month Retirement Services administration fee*
• AICPA Retirement Committee chartered to create a better solution to help small and midsized CPA firms - Targets firms with 1-50 employees - Scalable for 50 and above • Committee believes 401(k) plans are the strongest option • Demanded a robust and cost-effective solution with flexibility to address the needs of each individual firm • Rigorous selection process to identify the best partner to deliver solution
Administered by Paychex Retirement Services
Firms with up to 50 employees and less than $2 million in 401(k) plan assets
Firms with more than 50 employees or more than $2 million in 401(k) plan assets
• Per-participant fees are waived • $500 setup fee • $500 conversion fee (additional) • Dedicated service model • 6 money-back guarantee
will receive the following:
• Asset-based fee waived • Per participant fees are waived • $500 setup fee • $500 conversion fee (additional) • Dedicated service model • 6-month money back guarantee
• 50% off asset-based fee • Per participant fees are waived • $500 setup fee • $500 conversion fee (additional) • Dedicated service model • 6-month money back guarantee
Plans for Firms 401(k) Plan
Cost
Investment and Fiduciary Solutions
Flexible Plan Design
Ongoing Support
Service Guarantee
Diversified lineup managed by Mesirow Fiduciary Solutions
More than 9,500 investment options; fiduciary support options including 3(38) or 3(21) services to help minimize risk
Flexible and customizable plan design options that include matching, vesting, and loans
Dedicated 401(k) specialists assigned to your plan
Six-month, money-back service satisfaction guarantee
Offered through a third party, additional fees may apply
*Other fees may apply, such as optional fiduciary services
