need advice setting up a 401k for small business

Contact Fidelity,they set up 401-K’s for small business.Schwab might also.

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Contact Fidelity,they set up 401-K’s for small business.Schwab might also.

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thanks, i have, they require minimum 25 employees?? maybe it was more, and we only have 4 that will contribute.

Schwab requires 25?

Are you an LLC, S-Corp, or what?

I'm assuming your CPA has ran the math and provided you with the correct information on a 401-k making sense over a SEP-IRA or Solo?

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Don't think he'd be eligible for solo, because he has employees, and with a SEP, he would have to contribute the same % to all eligible employees (might get expensive). I would think maybe a SIMPLE if he wants to keep costs down.

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You are correct, I meant SImple over Solo. But needless to say I just wanted to make sure his CPA knew what he was talking about and didn't just throw out "you should start a 401k or something to do some pre tax retirement".

I just wanted OP to make sure he knew he may have other options.

Funny enough, I was just coming to TD to create an account to ask about 401k options. I’m researching alternatives to my company’s current plan, which basically only offers a bunch of target date retirement funds. I was told by our plan administrator that getting access to low expense ratio funds to index the S&P 500 would require a shift from the platform we currently have with American Funds to something more expensive from American Funds or someone else.

I have personal accounts with Vanguard and Fidelity, but I have no idea what “good” rates for a 60-person company look like.

A lot of the 401k options in regards to funds for the employees to purchase are terrible with very high fees.

Vanguard is one of the better options.

I honestly don't understand why they have such high fees outside of just because they can and employers/ HR/ GM's are not smart enough to shop around?

ETA: One of my suggestions to the OP was to search not just by the cheapest but also the fund cost and options.

We used a simple for years but just switched to a 401k for our company (28 employees). We switched because we turned 50 and max annual is $30,500 this year with 401K, and it’s $19,500 with a Simple. But if that doesn’t matter to him then I’d go Simple. It’s easier to deal with. All of ours is thru our Edward Jones office 401K has a lot more rules and regs and can be a pain in the rear.

While not a fan of this:

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Edward Jones office

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I'm a BIG fan of this. Will save you significant hastle and $

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SEP

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