401(k) and retirement plans your team can build on
A competitive retirement plan helps you attract talent and reward loyalty, with real tax advantages for you and your employees. We help Washington businesses choose the right plan, match it with the right provider and design it to fit.
Vetted providers and fiduciary advisors · Plan design and year-round support
A retirement plan is part of total compensation
Candidates increasingly weigh total compensation, and a solid plan with an employer match can be the deciding factor. Beyond recruiting, retirement benefits reward tenure and build loyalty, which helps reduce turnover.
We help Washington businesses work through the options, from Traditional and Safe Harbor 401(k) plans to SIMPLE IRAs, SEP IRAs and Solo 401(k)s, and connect you with vetted recordkeepers, third-party administrators and fiduciary advisors who make setup straightforward.
Compare the retirement plans side by side
Each plan trades contribution limits, employer cost and administrative work differently. 2026 IRS limits shown.
Traditional 401(k)
The flexible standard: the highest contribution limits, optional employer matching, Roth and pre-tax options, loans and custom vesting, with annual nondiscrimination testing and a Form 5500 filing. Best when you want maximum flexibility and can support a bit more administration.
- 2026 employee limit: $24,500 (+$8,000 catch-up at 50+)
- Employer match optional but recommended
- Roth, loans and auto-enrollment available
- Best for: roughly 20+ employees
Safe Harbor 401(k)
A 401(k) that trades a required, immediately vested employer contribution for an exemption from annual nondiscrimination testing, so owners and highly paid staff can defer the full limit without refunds. Best when you want a guaranteed match, easy compliance and to let owners contribute the maximum.
- Same $24,500 (2026) employee limit
- Required match (e.g. 100% to 3%+) or 3% non-elective
- No annual ADP/ACP testing
- Best for: owners who want to max out and strong recruiting
SIMPLE IRA
Savings Incentive Match Plan for Employees: a simplified plan built for small businesses, with low administration, no annual 5500 filing and a required employer contribution, in exchange for lower limits than a 401(k). Best for an easy, low-cost plan for a small team.
- 2026 employee limit: $17,000 (+$4,000 catch-up at 50+)
- Required 3% match or 2% non-elective
- No annual 5500 filing
- Best for: under 100 employees
SEP IRA
Simplified Employee Pension: an employer-funded plan for self-employed owners and very small businesses. Contribute up to 25% of compensation with minimal paperwork, and fund it in good years or skip it in lean ones. Best when an owner wants to save a lot with little administration.
- Employer contributions up to 25% of compensation
- Employer-only: no employee deferrals or Roth
- Minimal paperwork, flexible annual funding
- Best for: self-employed and small teams
Solo 401(k)
Individual or one-participant 401(k) for owner-only businesses (and a spouse on payroll). You contribute as both employee and employer for a very high combined limit, with Roth and loan options. A spouse on payroll can also contribute.
- Employee deferral $24,500 (2026) plus employer profit-sharing
- Very high combined contribution potential
- No employees means no testing and light administration
- Best for: self-employed with no other employees
Which plan tends to fit which business
Educational guidance only, not investment, tax or legal advice. Your best plan depends on your goals, budget and workforce; we confirm it with you and a fiduciary advisor.
Owner-only businesses
A Solo 401(k) for the highest combined limit and owner savings, or a SEP IRA when simplicity, low administration or variable cash flow matter most.
Small teams (1 to 10)
A SIMPLE IRA when you want it easy and low-cost; a SEP IRA when maximizing owner savings. Note that SEP IRAs are employer-funded only, so consider a 401(k) if a true match matters.
Growing employers (11 to 100+)
A Safe Harbor 401(k) to attract and retain staff or let owners max out; a Traditional 401(k) as the flexible, basic standard as headcount grows. Without a match, consider Safe Harbor to remove annual testing.
Feature priorities
Roth options and auto-enrollment are 401(k) features, so a 401(k) may fit better than an IRA if they are priorities. A 3(38) investment fiduciary can take on investment selection and monitoring.
What an employer match costs
A match is the single biggest driver of participation, and employer contributions are fully tax-deductible. A simple way to estimate the annual cost: number of participating employees × average salary × match rate. Common rates are 3% (typical), 4% (competitive) and 6% (generous).
Because contributions are deductible, the after-tax cost is lower; at a 21% corporate rate, the net cost is roughly 79% of the match. Actual cost depends on who participates and how much they defer, and we can model it with you.
Key features that shape your plan
These are the settings we help you choose when designing a plan around your goals and budget.
Employer match
Common structures include dollar-for-dollar up to 3% of pay, or 50 cents on the dollar up to 6%. A match is the strongest driver of participation and retention, and it is fully tax-deductible.
Vesting schedule
Vesting determines when employer contributions become the employee's to keep. Graded vesting over 3 to 6 years rewards tenure; Safe Harbor contributions vest immediately by rule. Employee deferrals are always 100% theirs.
Auto-enrollment
Enrolling eligible employees at a default rate greatly increases participation. Under SECURE 2.0, many newer 401(k) plans must include automatic enrollment; we confirm whether yours does and help set the default rate.
Investment options
Target-date funds simplify decisions for most participants, while a diversified menu lets experienced investors customize. Your fiduciary advisor selects and monitors the lineup and keeps fees reasonable.
Roth 401(k) option
After-tax contributions that grow tax-free, which appeals to younger workers and anyone expecting higher future tax rates. Offering both pre-tax and Roth adds flexibility at no extra cost to you.
Loan provisions
Letting participants borrow from their 401(k) for emergencies adds flexibility and can ease concerns about locking money away, which improves participation. It is optional in the plan design.
From selection to year-round support
Plan selection
We help you choose the right plan type for your size, goals and budget.
Provider matching
We connect you with vetted recordkeepers, TPAs and fiduciary advisors, and gather competitive quotes so you can compare total cost.
Plan design
We help structure matching formulas, vesting schedules and eligibility rules.
Ongoing support
Questions, plan reviews and coordination with your advisors throughout the year.
Understand, and share, your fiduciary role
As a plan sponsor you have a fiduciary duty to act in your employees' best interests: selecting and monitoring investments, keeping fees reasonable and following plan documents. We help you understand these obligations and connect you with fiduciary partners who can share or assume them: 3(16) plan administration, 3(21) and 3(38) investment fiduciaries, fee benchmarking and compliance monitoring. We have helped Washington businesses with employee benefits since 1992. We are an insurance broker, not investment advisors, so we work alongside trusted fiduciary partners to set your plan up right from the start.
401(k) and retirement plan questions
How many employees do we need for a 401(k) retirement plan?
What does a 401(k) retirement plan cost?
Do we have to offer an employer match?
How much can employees contribute in 2026?
How long does it take to set up a plan?
A benefits partner, start to finish
The right plan, not a default
From Solo 401(k) to Safe Harbor, we match the plan type to your size, goals and budget, and connect you to the provider that fits.
Fiduciary and compliance help
We connect you with 3(16), 3(21) and 3(38) fiduciary partners and help keep fees reasonable and your plan compliant.
Year-round support
Plan reviews, employee questions and coordination with your advisors, well past setup.
Ready to offer a retirement plan?
We'll help you compare plan types, design the match and vesting, and connect you with the right provider. Prefer email? Reach us at info@firstunderwriters.com. No obligation.
First Underwriters Insurance Brokers is a licensed insurance broker and is not a registered investment adviser, tax advisor or law firm; nothing here is investment, tax or legal advice. We help employers select retirement plan structures and connect them with vetted recordkeepers, third-party administrators and fiduciary advisors. Contribution limits and tax figures reflect 2026 IRS amounts and are subject to change; plan availability, eligibility, fees and terms vary by provider. Cost and tax figures are illustrative estimates only.