Employees can run scenarios, track their savings progress and get quick answers without getting overwhelmed. “You have the opportunity to invest in your future starting today” lands better than a generic reminder to log in. When new hires must wait months to become eligible or when enrollment is buried in paperwork, many never sign up. When saving for retirement, small percentages can make a big difference. A great opportunity to gain insights into how young professionals aged 25-35, save, invest and manage their expenses.

Consider an opt-out vs. an opt-in plan

• Those age 50 and older can make a “catch-up” contribution of up to $7,500.
• This setup makes it easy for employees to save without having to think about it.
• A small business owner who is actively involved in the business can participate in the company’s 401(k) as an employee – making contributions on behalf of their own retirement savings.
• We offer an industry-leading advanced platform defense, intelligent detection, automated data protection, fraud defense, identity and access management, and so much more.
• We’ll provide you with affordable options that best match your needs, manage your compliance and even proactively flag issues for you.

A younger workforce in tech may want mobile-first tools and gamified learning. Professionals in financial services might want deeper investment detail. A manufacturing workforce may need bilingual resources and in-person walkthroughs. Financial wellness programs are rapidly becoming an essential benefit as employees navigate challenges like student loans, high housing costs and the need to save for retirement.

Can you force employees to contribute to a 401(k)?

When real people are available to guide the process, more employees get off the sidelines and into the plan. When employees understand the match structure, they’re more likely to contribute enough to take full advantage of the benefit. When wages don’t leave room for long-term planning, participation drops. Getting employees to participate in a 401(k) plan doesn’t require flashy incentives. Employers need to simply remove friction, offer meaningful support through awareness and design a plan that meets people where they are. From our powerful plan dashboard to helpful administrative services like notification delivery and IRS filings, we make it easy.

Ensure employees make enough to save money

Discretionary matches offer flexibility but require annual testing and may have longer vesting schedules. Companies that use ADP payroll not only give their employees mobile access to their retirement adp401 account but provide them with access to pay statements, W-2s, timesheets and more. There’s also the risk of a retirement plan failing non-discrimination testing and that triggers a series of administrative tasks, including refunding excess contributions to HCEs.

Workplace financial wellness solutions for employees

A clear 401(k) eligibility letter to employees, paired with intuitive online enrollment, helps them act while they’re still in decision-making mode. Providing basic financial literacy before enrollment builds employees’ confidence to take that first step. Employers should cover budgeting, compound growth and long-term value to make the plan less intimidating and more accessible. They don’t always understand what’s offered, how it works or why it matters.

Financial Wellness Education

When returns from investments – such as mutual funds, value funds and fixed interest accounts –  are reinvested into the account, they compound each time earnings are paid. While distributions will be taxable in retirement, her account grows more quickly with compound growth. If she waits until after age 59 ½ to take a distribution, there is also no longer a 10% IRS penalty. A direct rollover moves retirement assets from one qualified retirement plan to another while maintaining the tax-deferred status of the assets. An employee’s previous 401(k) plan administrator (or IRA custodian) cuts a check or wire transfers funds directly into your company’s 401(k) plan. Since the employee never takes possession of the assets, there is no mandatory 20% federal tax withholding or early withdrawal penalty.

Additional Support Topics

ADP guides employers through every step of plan setup with personalized support. An ADP implementation manager works with you to manage day-to-day details and oversees a three-phase implementation process that includes hands-on administrator training. SECURE 2.0 is expanding access to long-term, part-time employees, making it harder to exclude large workforce segments.

It’s ingrained in our solutions — that’s why companies of all sizes have been counting on us since 1949. We offer an industry-leading advanced platform defense, intelligent detection, automated data protection, fraud defense, identity and access management, and so much more. When it comes to security for your ADP products and services, you need protection around the clock, and in every time zone. With over 70 years of experience and global reach, our security specialists and intelligence platforms have the bases covered. The SEP IRA is a tax-advantaged small-business retirement plan for anyone who is self-employed, owns a business, employs others, or earns freelance income. The plan requires employers to contribute an equal percentage of compensation for any employees, meaning it may work better for one-person firms.

• When employees don’t enroll in a retirement plan, they miss real financial advantages and earned benefits offered by their employers.
• With so many choices available today, there is a right retirement plan for you.
• Eligibility is set by the plan sponsor and may vary depending on factors like tenure, age, and employment status to determine who can participate a company’s retirement 401(k) plan.
• The total assets under management increase and a larger plan may lead to reduced fees and better pricing from plan providers.
• Retirement may be years away, but the actions people take today can shape when and how they get there.

Small businesses and self-employed individuals are especially vulnerable to unexpected costs and administrative headaches. Many users recommend switching to providers like Fidelity, Vanguard, or Schwab for lower fees and better support. A 401(k) is a tax-advantaged retirement plan offered by employers that allows employees to contribute and invest a portion of their salary. Contributions are automatically deducted from an employee’s paycheck and can then be invested in potentially high-return investments such as index funds. This setup makes it easy for employees to save without having to think about it.

This real-time integration solution saves time and money on plan administration and reduces potential compliance risk. In addition, payroll integrators are simply a pass-through system, facilitating data from one provider to another — they do not review and verify data, impound money or assume any responsibility like ADP. This kind of thorough validation mitigates plan risk and delivers more confidence in plan compliance and the accuracy of participant accounts. Fidelity is a great pick for a 401(k) because of its robust investment options and strong advisory and administrative support.

Best 401(k) plans of 2025

1MyADP Retirement Snapshot(R) makes no assumptions about your tax status or savings and should not be used as the basis for any planning decisions. The likelihood of various savings outcomes are hypothetical, do not reflect actual investment results or market fluctuations and are not guarantees of future results. Results may vary potential savings scenarios, with each use and over time. It’s about meeting employees where they are – with the tools, flexibility and relevance that turn a retirement plan into something worth engaging with.