401(k) Plan Cost Calculator: The Impact of the SECURE Act 2.0
If you’re a small business starting a 401(k), you may be eligible for tax credits. Learn how SECURE Act 2.0 tax incentives may help you start a Human Interest 401(k) plan.
2024* | 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| $2,215.00 | $1,872.00 | ||||||||||
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| -$1,000.00 | -$1,000.00 | ||||||||||
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| Estimated 401(k) Plan Cost | $1,215.00 | $872.00 | |||||||||
Human Interest can help boost your hiring and retain better employees at your company
Disclosures and Notes
- The 401(k) Plan Cost Calculator above is not tax or legal advice and is intended to estimate the cost of a Human Interest 401(k) plan’s recordkeeping and plan administration services, taking into account the tax credits available through the SECURE Act 2.0.
- Cost calculations above assume a constant employee size, including HCEs and NHCEs, and that headcount doesn't exceed 100, in order to maintain eligibility for SECURE Act 2.0 tax credits. Costs are calculated based on the number of months remaining this year. Costs for subsequent years are based on 12 months of service.
- Costs above reflect Human Interest 401(k) plan administration and recordkeeping fees. The asset fee of 0.50% is charged to plans and allocated to participants by Human Interest Advisors, a wholly-owned subsidiary of Human Interest. Investment expenses not included in the illustration.
- Costs above do not include any special offer or promotion.
- Investment Advisory services provided through Human Interest Advisors, a Registered Investment Advisor.
Learn more about 401(k) tax benefits
The Setting Every Community Up for Retirement Enhancement (SECURE) Act helped make 401(k) plans more accessible for small businesses. SECURE Act 2.0 expands on tax credits, offering even more incentives to offer a retirement plan.
Small businesses with up to 50 employees may be eligible for a tax credit to cover 100% of plan start-up costs, capped annually at $5,000/employer for three years. Businesses with 51-100 employees may be eligible for the original credits equal to 50% of administrative costs, capped annually at $5,000/employee for three years. Additionally, auto-enrollment provides a $500 tax credit and can help encourage employee participation.
These tax credits can add up to $16,500 and are available for three years.
How Human Interest can help
Technology has helped streamline 401(k) plan administration—which is great news for small business owners. Human Interest can help reduce your administrative burden and could drive costs down in the process. That way you can spend less time on back-end work and more time on what matters the most: running your business.
Want to learn more?
Read about the influence SECURE Act 2.0 can have on small business retirement plans.
Interested in offering an employer match? Calculate the costs of a 401(k) match.
What are the benefits of auto-enroll? Learn about the plan design feature that may add tax credits.