Small business retirement plans made simple
Help your employees gain financial security.
Are your employees saving enough for retirement?
Making ends meet and saving for retirement at the same time can be a challenge for today’s employees. Many don’t have a plan or haven’t saved even a fraction of what they would need to retire comfortably. At Principal® and OneDigital Investment Advisors (“OneDigital”), we're aiming to fix that.
As a business owner, you can help start your employees on a path to a better future. A Simply Retirement by Principal® 401(k) plan with OneDigital advisory services can be an easy way for them to save money now with the potential to have it grow over the years so they can enjoy retirement.
What Simply Retirement by Principal with OneDigital® can do for you
Setting up a workplace retirement plan isn’t something you do every day. We get it. Maybe you aren’t even sure where to start. Simply Retirement by Principal® with OneDigital makes it easy to learn more about retirement plans and what’s involved. And when you’re ready, you can use our planner to see what a plan might look like for your business and estimate costs.
Take advantage of SECURE 2.0 Act tax credits to help offset up to 100% of your first three years of plan startup costs.The benefits of the SECURE 2.0 Act.
Simple selections
Set up your plan 100% online, where and when it’s convenient for you—or call if you have questions. We’ve streamlined the investment selection and simplified the paperwork, too.
Simple pricing
The low, flat-fee recordkeeping pricing makes a 401(k) plan affordable for small businesses. It’s a straightforward cost you can plan for each month.
Simple onboarding
After you purchase your plan, you’ll enroll your employees through the Ubiquity Retirement + Savings® platform—used by thousands of small businesses across the U.S.
Simple administration
Ubiquity’s user-friendly dashboard will help you manage your plan and save time with features like automated notifications and payroll integration.
Take advantage of SECURE 2.0 Act tax credits to help offset your first three years of plan *The benefits of the SECURE 2.0 Act.
Simply Retirement by Principal®costs
Simply Retirement by Principal®
recordkeeping costs
Up-front
$500One-time
setup fee
Every month
$185participant
OneDigital advisory fees
Every quarter
There's a one-time startup fee of $500, a monthly recordkeeping fee of $185 ($555 billed quarterly), a $6 monthly fee per participating employee, and OneDigital's monthly advisor fee of $250 ($750 billed quarterly) and 45 bps (11.25 bps deducted quarterly) until plan assets reach defined threshold.
*Refer to your OneDigital 3(38) agreement for more details
Cost savings with flat-fee 401(k) plan recordkeeping pricing
Other 401(k) plans may increase recordkeeping fees to business owners as the total account balances increase. Not with the Simply Retirement by Principal® 401(k) plan with OneDigital advisory services.
Still have questions?
We have answers.
What are the tax benefits for starting a new 401(k) plan?
A new enhancement was made to the tax credits intended to help cover the costs for small employers that choose to offer new defined contribution plans. Small employers with 50 or fewer employees can now count 100% (maximum $5,000 a year) of their qualified plan expenses toward the tax credit calculation, allowing more employers the ability to maximize the
Benefits of the SECURE 2.0 ActWhat is a 401(k) plan, and how does it compare?
401(k) plans allow employees to set aside a portion of their pay, typically before taxes. Employers can make contributions to the employees’ retirement plan if they choose.
401(k) plan detailsWhat’s involved in managing a 401(k) plan?
The program automates many of the tasks required, but you’ll still have a few basic responsibilities as the plan administrator. Here’s what you need to know.
Retirement plan basics
Small business growth platform
With a Simply Retirement by Principal® plan, your client has access to Elevate by Principal, a powerful network, resource, and team of people in their corner. From data-driven insights to deep discounts on products and services, that a business owner uses every day, Elevate by Principal can provide what your client needs to take their business to the next level.
Intended for plan sponsor use.
SECURE 2.0 Act legislation allows small businesses with up to 50 employees a tax credit of 100% and those with 51-100 a tax credit of 50% of the qualifying start-up costs for a new employee retirement plan for the first three years of the plan as follows 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.
New tax credit for start-up plans offering employer contributions: A tax credit equal to the applicable percentage of employer contributions, capped at a maximum of $1,000 per employee.
- Applicable to small employers with 50 or fewer employees.
- For employees with 51-100 employees: The credit is phased out by reducing the amount of credit each year 2% for each employee in excess of 50.
1st and 2nd year = 100%, 3rd year = 75%, 4th year = 50%, 5th year = 25%, 6th year = 0%
No contributions may be counted for employees with wages in excess of $100,000 (inflation adjusted). If taking advantage of this tax credit, employer contributions may not also be counted towards “start-up costs” in the start-up tax credit calculation.
*Recordkeeping-fee:Pricing shown applies when working with a TPA. Bundled pricing is a $500 initial setup fee, then $185 per month. Fees paid by the business owner are billed quarterly. Fees paid by participants are deducted monthly from participant accounts. Participant fees are charged if there is a $100 account balance, regardless of whether the participant is active or inactive. Custodial and investment fees are charged against participating employees’ accounts (those vary by investment and range from 0.03% - 0.86%, as of March 31, 2024). If the business owner chooses to work with a financial professional and/or TPA, their fees are also additional and may be billed to the business owner. Financial professional fees may be deducted from participant accounts.
*What’s included: Plan costs are billed quarterly. Custodial and investment fees are charged against participating employees’ accounts (those vary by investment and range from 0.03% - 0.86%, as of March 31, 2024). If the business owner chooses to work with a financial professional and/or TPA, their fees are separate and may be billed to the business owner. Financial professional fees may be deducted from participant accounts.
*Principal: As of March 31, 2024
