Get Big 401(k) Benefits

Spark 401k offers a simple way for you and your employees to save for retirement. 401(k) plans are not only a powerful way to save for tomorrow—they also provide great tax advantages too and can help you retain and attract key talent.

  • Eligible employees can contribute, tax-deferred, to their 401(k)—even more than they can contribute to an IRA—lowering their current taxes to keep more of their money while saving for retirement.
  • Eligible employees can choose to participate in the plan and set the amount they want to defer for their 401(k) account, and this amount is deducted automatically for them with each payroll.
  • If you choose to offer an employer contribution with your 401(k) plan, such as a profit share or match, you and your high-earning employees may be able to sock away over $50,000 a year.

Spark 401k Plan Design Choices

Spark 401k offers two customizable 401(k) plans that are designed for small businesses with W-2 employees. These plans can be tailored to help meet your needs and are outlined below:

Safe Harbor 401k Traditional 401K
Best For...

The majority of our customers that select a Safe Harbor 401k plan do so to:

  • Maximize their personal contributions
  • Simplify their plan management

Traditional 401k plans are typically best for companies that:

  • Want the flexibility to provide matching contributions or not, or prefer a vesting schedule
  • Want to allow their employees to save independently for their own retirement
Owner and Highly Compensated Employees (HCE) deferral levels (in 2018 $18.5K or $24.5K if age 50 or older)

Maximum eligible deferral levels, with a qualifying matching contribution.

Limited: Generally owner/HCE deferrals are limited to no more than 2% above the average eligible employee deferral.

Example: If on average your eligible employees contribute 4% of their pay, then the owner/HCE average deferral amount cannot exceed 6% of their pay.

Employer Pricing

For those starting their first plan:

  • One-Time Setup fee of $495
  • Administration costs starting at $95/month

Pricing for those rolling in assets or switching to Spark 401k:

  • Pricing lowers starting at $500K for both setup, administration, and asset management
  • Based on number of employees, as your plan surpasses milestones your pricing continues to lower and administration is typically $0 by $5M in assets.

Get a quote to determine your pricing

For those starting their first plan:

  • One-Time Setup fee of $750
  • Administration costs starting at $110/month

Pricing for those rolling in assets or switching to Spark 401k:

  • Pricing lowers starting at $500K for both setup, administration, and asset management
  • Based on number of employees, as your plan surpasses milestones your pricing continues to lower and administration is typically $0 by $5M in assets.

Get a quote to determine your pricing

Setup

The purchase and setup process for all Spark 401k plans is 100% online. Once installed a plan can usually be ready to fund by your next payroll period.

Same

Matching contributions

Required—Safe Harbor plans require a minimum matching contribution of at least 4% dollar-for-dollar of your employees' total compensation or a 3% non-elective deferral.

Matching contributions vest immediately.

Optional—Traditional 401(k) plans offer a matching feature, but it is not required. Vesting schedules are also an option on employer contributions (see below).

Profit sharing contributions

In addition to matching, an employer has the option to provide a profit sharing contribution to participants of up to 25% of income with a cap of $55K (or $61K for employees over 50 years of age) in 2018.

Note: The 25% would need to be reduced by the matching percentage selected and may not exceed IRS caps above.

Optional—An employer has the option to provide a profit sharing contribution to participants of up to 25% of income with a per employee cap of $55K (or $61K for employees over 50 years of age) in 2018.

Vesting
  • Immediate on Safe Harbor matching contributions
  • 4-, 5-, or 6-year graded schedule options available for any additional profit sharing
  • 4-, 5-, or 6-year graded schedule options available for any additional profit sharing
  • 3-year cliff (0% vested first 3 years, 100% vested after 3 years)
IRS testing/administration

A Safe Harbor plan automatically satisfies IRS non-discrimination testing by making a qualifying matching contributions on behalf of your employees.

Spark 401k plan testing is performed twice per year to make sure your plan is in accordance with IRS rules.

Roth 401(k)

A feature you can choose to make available to employees so they can choose to make standard tax-deferred contributions, after–tax contributions into the Roth feature, or they can select to do both. Unlike a Roth IRA, there is no income limit to choose to contribute towards the Roth 401(k).

Same

Loans

If you enable for your plan, participants can borrow up to 50% of their balance, not to exceed $50,000.

Same

Have questions? Please give us a call at 800-431-7934 option 1. We’re here to help you get the right plan and features for your business.

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