401(k) administration.

Three different roles on the same plan. The plan administrator owns the plan document, the disclosures, and the annual filing. The recordkeeper tracks each employee balance, vesting, and investment elections at the participant level. The custodian holds plan assets. On a small-employer plan, one or two vendors often cover all three, but the responsibilities are distinct. Accuplan administers the plan and American Estate & Trust serves as the custodian.

You do not need one, but most small employers want one. A Safe Harbor plan automatically passes ADP and ACP testing in exchange for a guaranteed employer contribution. The cost: either a 100% match on the first 3% of pay plus 50% on the next 2% (a 4% effective match), an enhanced match of at least 4% on the first 5%, or a flat 3% non-elective contribution to every eligible employee. The trade is predictable: a known employer cost in exchange for no testing risk.

It depends on plan size and structure.

• Form 5500-EZ. One-participant plans (owner only, plus spouse) once total assets reach $250,000 at year-end. Below that, no filing.
• Form 5500-SF. Small plans with fewer than 100 participants at the start of the plan year. The version most multi-employee 401(k) plans use.
• Form 5500. Large plans with 100 or more participants. Triggers an independent audit requirement.

Filings are due seven months after the plan year ends (July 31 for calendar-year plans), with one extension available to October 15 via Form 5558.

Yes, for plans started after December 29, 2022 and reaching plan years beginning in 2025. Under SECURE 2.0, new 401(k) plans have to automatically enroll eligible employees at a default deferral rate between 3% and 10%, escalating 1% per year up to a cap of at least 10% (no more than 15%). Employees can opt out or change the rate. Plans in place before December 29, 2022 are grandfathered. Small employers (fewer than 11 employees) and businesses less than three years old are also exempt.

Under SECURE 2.0, an employee who works 500 or more hours in two consecutive years has to be allowed to make elective deferrals, even if they would otherwise be excluded as part-time. The two-year rule replaced the original three-year SECURE 1.0 version starting in 2025. The employer is not required to match LTPT employees, only to let them defer. This rule is one of the more common reasons a plan ends up needing an amendment, since most plan documents written before 2020 do not address it.

Starting in 2026, employees age 50 and over with prior-year FICA wages above $150,000 from the business sponsoring the plan have to make any catch-up contribution as Roth (SECURE 2.0 §603). The wage threshold is set annually by IRS notice (Notice 2025-67 set 2026 at $150,000). Below the wage threshold, the employee chooses pre-tax or Roth. Plans that do not currently offer Roth have to add the option or stop accepting catch-ups from high earners.

For pre-tax 401(k) balances, required minimum distributions start at age 73 for anyone who reached 72 in 2023 or later. The age shifts to 75 starting in 2033 (SECURE 2.0 §107). Roth 401(k) money inside a designated Roth account is exempt for the original owner under SECURE 2.0 §325 (effective 2024). The IRS RMD FAQ has the current rules.

Yes, if the plan document allows it. Loans are capped at 50% of the vested balance or $50,000, whichever is less, repaid over up to 5 years (longer for a primary-residence loan). Hardship withdrawals are allowed for IRS-defined safe-harbor reasons (medical, education, primary residence, funeral, casualty loss, eviction). Whether your plan offers either depends on how the plan document is set up.

When an employee leaves, their vested balance stays in the plan unless they elect a distribution or rollover. Plans can force out small balances. Under SECURE 2.0, the involuntary cash-out threshold rose from $5,000 to $7,000 in 2024. Cash distributions are subject to 20% mandatory federal withholding and reported on Form 1099-R for the year paid.

If you want a self-directed 401(k) for an owner-only business, see our Solo 401(k) page. For a multi-employee plan, the investment menu is set in the plan document, typically a curated set of mutual funds or collective investment trusts. We can structure plans that allow self-directed brokerage windows for participants who want broader access. Prohibited transaction rules apply the same way they do to a self-directed IRA.

Pricing depends on plan design (Safe Harbor, traditional, profit-sharing, or a combination) and headcount. Talk to a specialist for a quote.