> ## Documentation Index
> Fetch the complete documentation index at: https://every.help/llms.txt
> Use this file to discover all available pages before exploring further.

# Retirement Plans

> Managing 401(k) and retirement benefits

## Retirement Plans

Help employees save for retirement with 401(k) plans through Every.

### 401(k) Overview

Every's 401(k) features:

* Traditional and Roth 401(k) options
* Employer matching contributions
* Automatic enrollment capabilities
* Diverse investment options
* Low administrative fees
* Mobile app access

### Plan Setup

Setting up a 401(k) plan:

<Steps>
  <Step title="Choose Plan Type">
    Select Traditional 401(k), Safe Harbor, or other plan type
  </Step>

  <Step title="Set Eligibility">
    Define employee eligibility requirements
  </Step>

  <Step title="Configure Matching">
    Set employer match formula
  </Step>

  <Step title="Select Investments">
    Choose investment fund lineup
  </Step>

  <Step title="Launch Plan">
    Communicate to employees and begin enrollment
  </Step>
</Steps>

### Contribution Types

<Tabs>
  <Tab title="Employee Contributions">
    **Pre-Tax (Traditional 401k):**

    * Reduces current taxable income
    * Taxes paid at withdrawal in retirement
    * 2024 limit: \$23,000
    * Age 50+ catch-up: \$7,500

    **Roth 401(k):**

    * After-tax contributions
    * Tax-free withdrawals in retirement
    * Same contribution limits
  </Tab>

  <Tab title="Employer Contributions">
    **Matching Contributions:**

    * Common formula: 50% of first 6%
    * Fully vested or vesting schedule
    * Made per payroll period

    **Profit Sharing:**

    * Discretionary contributions
    * Based on company performance
    * Typically annual
  </Tab>
</Tabs>

### Contribution Limits (2024)

| Contribution Type           | Limit                |
| --------------------------- | -------------------- |
| Employee Elective Deferrals | \$23,000             |
| Catch-up (Age 50+)          | \$7,500              |
| Total Annual Limit          | \$69,000             |
| Highly Compensated Employee | Special limits apply |

### Employer Matching

Common matching formulas:

* **50% match up to 6%** - Match $0.50 per $1 up to 6% of salary
* **100% match up to 3%** - Dollar-for-dollar match up to 3%
* **100% match up to 4%, then 50% up to 6%** - Tiered matching
* **Discretionary** - Company decides match percentage annually

<Note>
  Employer matching contributions are a powerful recruiting and retention tool
</Note>

### Vesting Schedules

Vesting determines when employees own employer contributions:

* **Immediate Vesting** - Own contributions immediately
* **Graded Vesting** - Percentage vests over time (e.g., 20% per year for 5 years)
* **Cliff Vesting** - 100% vests after specific period (e.g., 3 years)

Employee contributions are always 100% vested.

### Automatic Enrollment

Increase participation with auto-enrollment:

1. Automatically enroll new hires at default rate (e.g., 3%)
2. Allow opt-out within specified period
3. Include automatic escalation (increase rate annually)
4. Educate employees about the benefit

### Investment Options

Provide diverse investment choices:

* Target-date retirement funds
* Index funds (domestic and international)
* Bond funds
* Large-cap, mid-cap, small-cap equity funds
* Stable value or money market funds

<Tip>
  Include a qualified default investment alternative (QDIA) for automatic enrollments
</Tip>

### Loan and Withdrawal Options

401(k) plans may allow:

* **Loans** - Borrow from own account (must repay with interest)
* **Hardship Withdrawals** - For specific financial emergencies
* **In-Service Withdrawals** - After age 59½ while still employed
* **Required Minimum Distributions** - After age 73

<Warning>
  Early withdrawals (before age 59½) typically incur 10% penalty plus income taxes
</Warning>

### Compliance

Every handles 401(k) compliance:

* Non-discrimination testing
* Annual Form 5500 filing
* Summary plan descriptions
* Safe harbor notice requirements
* Audit assistance
* Department of Labor compliance

### Rollover Accounts

Employees can roll over retirement accounts from:

* Previous employer 401(k) plans
* Traditional IRAs
* Roth IRAs (to Roth 401k)

### Retirement Planning Tools

Help employees plan for retirement:

* Retirement calculators
* Investment advice
* Target retirement planning
* Contribution recommendations
* Educational webinars

### Termination and Distributions

When employees leave:

1. Account remains in plan (if balance over \$5,000)
2. Or employee can:
   * Roll over to IRA
   * Roll over to new employer's plan
   * Take distribution (taxes apply)
   * Keep in current plan