The default retirement plan has become the 401K. The 401(k) industry has been working to improve and help more people achieve a more virtuous retirement. In recent years, 401K programs have improved, and their fees and expenses have fallen.

Simple 401k doesn’t need to go through the same discrimination testing as traditional plans. This can result in lower administrative costs per year for businesses.

This means that both the owner’s salary deferral contributions and those of key employees are not affected by deferrals received from other employees. These 401k have simple contribution formulas. You can find more information about 401k compliance assistance on the internet.

Employees don’t need to wait for years to have full control of all their retirement plan assets. They can borrow and withdraw money.

A simple 401k is the only type of qualified retirement plan that your company can have. Employer contributions cannot be suspended. This is a decision you can make with traditional 401k plans if you want.

The IRS grants you a grace period of two years during which contributions can be continued if your business grows beyond 100 employees. Your business must file an IRS Form 5500 every year.