Classic 401(k) with easy online account setup, designed for individuals and small businesses
- 4 step setup with full online administration
- Employers and employees can contribute
Learn more about solo or small business plans.
Small business owners and entrepreneurs
Bank of America Workplace BenefitsTM has a comprehensive suite of retirement, health benefit and financial wellness solutions to help maximize the financial future of you and your employees.
Benefits that help attract and retain employees in a challenging labor market
Guidance on selecting solutions tailored to the needs of your business
Ongoing support to enhance your benefits as your business evolves
Financial education resources to help your employees make the most of their benefits
Establish or enhance your small business plan
401(k) with Merrill1
SEP IRA or SIMPLE IRA with Merrill1
Inexpensive and easy-to-establish plan with online application and administration
- SEP: Designed for individuals and businesses with few employees. Only employers can contribute.
- SIMPLE: Designed for businesses with 100 or fewer employees. Employer contributions are mandatory; employees have flexibility to contribute.
Learn more about SEP IRA or SIMPLE IRA plans.
Health Benefit Solutions from Bank of America2
Health Savings Accounts designed to help individuals and employees save on health expenses now and in the future
- Online setup and administration
- Employers and employees can contribute
Learn more about individual or small business plans.
Custom 401(k) with a Merrill Advisor1
Flexible program with dedicated financial education support, designed to support various plan types and business needs
- Set up and administer with advisor support
- Employers and employees can contribute
Modern workplace retirement plan solution to reduce the complexity, fiduciary burden and potentially the cost of offering a retirement plan
- Set up and administer with advisor support
- Employers and employees can contribute
Cash Balance Pension Plan with a Merrill Advisor1
Defined benefit plan with highest level of tax-deductible retirement contribution limits; can be combined with other plans to maximize benefits
- Set up with advisor
- Employers must contribute, subject to minimum and maximum funding requirements
Related Topics
Frequently asked questions
How do I decide what retirement plan is best for my business?
Merrill offers a wide variety of small business retirement plans, regardless of whether you have a hundred employees or just one. The most common small business retirement plans are Small Business 401(k) for individuals and companies with employees, SEP IRA, and SIMPLE IRA.
One size does not fit all. There are pluses and minuses to each of the plans, and deciding the right plan is based on where you are in your business life cycle and the number of employees you currently have or may have in the future. Compare employer and self-employed plans from Merrill to choose the right plan for your needs.
Do small businesses have to offer retirement plans?
Some states have passed legislation requiring businesses to provide a retirement savings program for their employees. The form of this program will vary depending on the size of your business and the state in which your business is located. In states without mandated programs, there is no requirement that a business must offer a retirement plan. But in today's competitive job market, offering an employee match through a Small Business 401(k) can make your business more attractive to future employees, while you receive the benefits of having a workplace retirement plan now. If you're just starting out, learn more about Small Business 401(k) from Merrill.
What is the difference between a 401(k) and a SIMPLE IRA if I have employees?
A SIMPLE IRA requires employer contributions and allows for employee contributions. You can choose to contribute between 2% (minimum) for each eligible employee or match employee contributions up to 3% of compensation. In contrast, a 401(k) gives added flexibility for employer contributions to employee accounts and allows for higher contribution limits. For business owners seeking to maximize their retirement savings, the higher contribution limit of a 401(k) tends to be a better fit. Both account types are easy to open with Merrill. Learn more about a SIMPLE IRA or a Small Business 401(k).
What tax incentives/ advantages are available by offering a plan for my employees?
There may be two specific credits you could take advantage of — the Employer Contribution Tax Credit and the Plan Cost Tax Credit. The Employer Contribution Tax Credit is based on contributions made to eligible employees, by the business, over the first few years of the plan. The Plan Cost Tax Credit pertains to eligible plan start-up costs. For more information, speak with your tax advisors or visit IRS.gov.
What is the difference between a 401(k) and a SEP IRA if I’m self-employed?
A SEP IRA allows you to save up to 25% of your income in the account. In contrast, with a 401(k), you can save up to 100% of your income as an employee contribution (up to the annual threshold) plus additional employer contributions with a limit of up to a 25% of your income. Because you can contribute through salary deferrals in addition to employer contributions, you may have the ability to contribute more into an Individual 401(k) than a SEP IRA, which is eligible for employer contributions only. Both account types are easy to open with Merrill. Learn more about a SEP IRA or an Individual 401(k).
Is it possible to switch retirement plan types to maximize benefits for myself and my employees?
Many business owners transition to different plan types as their company grows or needs change. Evaluating plan options regularly can help ensure you’re offering the most beneficial retirement plan for your business.
1 Investment products are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated.
2 Banking products are available from Bank of America, N.A.
* Employers should carefully evaluate the fees and expenses associated with any Pooled Employer Plan before onboarding. PEP costs can vary and employers should compare pricing and features against other available retirement plan solutions to determine the best fit for their company.