2026 Retirement Planning Guide
What business owners need to know about contribution limits, tax credits, state mandates, plan administration, and choosing the right retirement-plan partner.
A five-minute read, built for decision-makers. Understand your 2026 options, then talk them through with a specialist.
The highest employee deferral of any small-business plan — before employer contributions and catch-ups.
2026 — what you need to know
Four topics shape most 2026 retirement decisions: the limits, the tax credits, the state mandates, and the timeline. Here’s the essentials.
IRS limits & why a 401(k)
A 401(k) offers the highest employee deferral of any small-business plan, with pre-tax and Roth options, flexible plan design, and loans depending on the plan document.
- 401(k) employee deferral$24,500
- SIMPLE IRA$17,000
- SEP-IRA (employer only)up to $72,000
SECURE Act 2.0 tax credits
Expanded federal credits may help eligible small businesses offset the cost of a new plan. What applies depends on your situation — pick the path that fits.
Actual eligibility and credit amounts depend on employer size, plan history, compensation, contributions, tax status, plan design, and applicable IRS rules. Credits are not guaranteed.
What does a Safe Harbor 401(k) actually cost?
Safe Harbor plans skip most IRS nondiscrimination testing in exchange for a formulaic employer contribution. Enter your payroll to see the four IRS-approved formulas side by side.
Industry average is 34%. Well-run plans with strong communications and auto-enrollment typically see 60–75%.
| Formula | Annual cost | Per pay period |
|---|---|---|
Basic Match 100% up to 3% + 50% on next 2% The company matches 100% of employee 401(k) contributions up to 3% of compensation, plus 50% on the next 2%. IRC §401(k)(12)(B) | $13,600.00 per year ≈ $680 / employee | $523.08 / pay period |
Enhanced Match 100% up to 4% of comp The company matches 100% of all employee 401(k) contributions up to 4% of compensation (cannot require deferral above 6%). IRC §401(k)(12)(B)(iii) | $13,600.00 per year ≈ $680 / employee | $523.08 / pay period |
Non-Elective Contribution 3% of eligible payroll The company contributes 3% of every eligible employee's compensation, regardless of whether they defer. IRC §401(k)(12)(C) Covers everyone — no participation math | $30,000.00 per year ≈ $1,500 / employee | $1,153.85 / pay period |
QACA Match Lowest cost100% up to 1% + 50% on next 5% Qualified Automatic Contribution Arrangement — pairs a lighter match with auto-enrollment and vesting. IRC §401(k)(13)(D)(i)(I) Lowest employer cost when paired with auto-enroll | $11,900.00 per year ≈ $595 / employee | $457.69 / pay period |
Sources. Safe Harbor formulas are statutory under IRC §401(k)(12) (Basic Match, Enhanced Match, Non-Elective) and §401(k)(13) (QACA). 2026 dollar limits (§401(a)(17) compensation cap of $360,000, §402(g) elective deferral of $24,500, §415(c) annual additions of $72,000) are taken directly from IRS Notice 2025-67.
Assumptions. Match formulas assume participants defer enough to earn the full match. Non-elective is calculated on 100% of eligible compensation. Calculations use aggregate payroll — for businesses where individual employees earn above the 2026 §401(a)(17) cap of $360,000, actual employer cost may be slightly lower than shown; request a proposal for a plan-specific quote.
Disclaimer. Results are estimates and should not be considered tax or legal advice. Consult a qualified retirement plan professional for a personalized proposal.
State retirement mandates
State retirement mandates continue to expand. Requirements vary by state, employee count, business age, and whether you already offer a qualified plan.
Employer-sponsored 401(k)
- Higher annual contribution limits
- Employer match & profit-sharing options
- Flexible plan design
- May satisfy many state requirements
State IRA program
- Payroll-deduction Roth IRA
- Lower contribution limits
- Usually no employer match
- Limited plan-design flexibility
State program rules, deadlines, thresholds, and penalties can change and evolve rapidly. Snapshot verified May 20, 2026 — re-verify state requirements before use.
2026 planning timeline
A proactive review preserves more options. Late-year compression narrows them.
A new Safe Harbor plan intended for the 2026 plan year generally needs to be established before October 1, 2026, subject to applicable rules. Plans started after this date may not qualify until 2027.
Why employers choose Asure
Beyond the plan itself: the program, the guarantee, the integration, and the pricing that keep it running cleanly.
(k)ickstart®
An industry-first program that encourages positive saving behavior — with educational resources, financial-wellness support, and a potential 3% cash-back incentive.
Available to qualifying participants in eligible Human Interest 401(k) or 403(b) plans. Eligibility and terms apply — the incentive is not guaranteed.
- 1Sign upCreate the retirement account.
- 2Save consistentlyContribute 8%+ of each paycheck for 12 consecutive months.
- 3Submit the claim formWithin 6 months after the 12-month period.
Eligible for participants earning $60,000 or less during the qualifying period; minimum award $100, maximum $250. Additional requirements apply.
Customer Experience Guarantee
Service standards that are measurable, time-bound, and backed by compensation.
- Inquiries answered within 4 business hours
- Contributions processed within 3 business days
- Form 5500 filed on time
50% off the next month's bill, plus coverage of any applicable Form 5500 late-filing penalty.
- Distributions initiated within 2 business days
- Phone calls answered in under 3 minutes
- Inquiries answered within 4 business hours
$25 gift card issued directly to the affected participant.
This is a representation of services and is not a contractual obligation. Asure reserves the right to update, modify, or discontinue any element of this guarantee at any time. Customers must be in good standing and compliant with their service agreement to be eligible for compensation.
Customer Experience Guarantee flyer (PDF)Integrated 401(k) administration
When payroll and retirement work together, employers spend less time chasing data, correcting errors, and coordinating between disconnected systems.
Zero transaction fees
Legacy 401(k) providers may bury dozens of transaction fees in complicated plan documents. Asure charges none of them.
This reflects the absence of the listed transaction fees only. Shipping, delivery, setup, asset-based, advisory, custody, fund, tax, and other disclosed charges may still apply. This does not mean the plan has no cost.
Take more of the day-to-day work off your plate.
A better retirement plan can strengthen your benefits. AsureWorks can help simplify the payroll, HR, and workforce operations behind your growing business.
With AsureWorks, dedicated experts manage designated day-to-day workforce administration while you remain the employer of record and retain control of your people, benefits, retirement plan, and business decisions.
Retirement services remain the focus of your review. Selecting AsureWorks simply lets your specialist know you would also like to discuss broader workforce support.
AsureWorks overview (PDF)Experts run the work
Dedicated Asure specialists manage designated payroll, HR, and workforce administration.
One connected operating model
Coordinate payroll, HR, time, benefits, and retirement support through AsureCentral.
You stay in control
Remain the employer of record while AsureWorks manages the agreed operational work.
Questions about what may work for your business?
We can review your goals, potential tax credits, state requirements, plan design, payroll integration, and implementation timeline.