Small-business 401(k)

Fidelity's small business 401(k), Fidelity Advantage 401(k)SM is a great option for companies looking to offer a 401(k) for the first time.

Available from Fidelity Workplace, this streamlined plan features:

  • Affordable transparent pricing
  • Potential tax credits for startup costs
  • Employer matching contributions
  • A simplified investment lineup



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Offering a competitive retirement benefit like a 401(k) is one way to attract and retain talent in today's tight labor market. And don't forget that as the employer, you get to save for your future too.

Learn more about Fidelity Advantage 401(k) and get in touch here.

Key things to know

Who is eligible

Businesses with 2-1,000 employees looking to start a 401(k) for the first time.

Tax benefits

For employers: Tax-deductible employer contributions. Plus, when starting a new 401(k), businesses may be eligible for tax credits.1

For employees: Tax-deferred growth potential and pre-tax contributions to the plan.

Who contributes

Employers and employees.

Employer Contributions

Safe Harbor employer matching contributions are required. This helps to alleviate year-end testing burdens and are generally tax-deductible.2

Employee contributions

Salary deferrals up to $23,000 for 2024. Additional salary deferrals up to $7,500 for those age 50 or older.

Contribution limits

Maximum contribution limit for 2024 is $36,800 or $44,300 for those age 50 or older.3


Certain withdrawal types are available, with limitations. Loans are not available.

Investment options

Participants can choose between a target date fund or build a portfolio from a diversified lineup.


Paid by Employer:

  • $500 one-time start-up fee
  • $300 per quarter for plan administration

Paid by Employee:

  • $25 per quarter for record keeping
  • 0.125% on account balance per quarter for investment services

Employers must:

  • Supply accurate employee, business, and contribution information in a timely manner, and help to correct any errors identified by Fidelity.
  • Monitor the plan's fees and ensure they are reasonable.
  • Participate in year-end testing requirements, which are minimal since it's a Safe Harbor plan.

Fidelity performs most administrative duties as the Plan Sponsor, 3(16) and 3(38) fiduciary, which relieves the employer of significant fiduciary risk and administrative burden.