Merrill A Bank of America Company Merrill A Bank of America Company Open an account Login Open Menu bar Find answers to common questions at MerrillSchedule an Open an accountwith Merrill Request a 401(k) proposalpopup Enjoy contribution limits 3 times higher than that of a traditional IRAFootnote1 Make contributions that are generally tax deductible by the businessFootnote2 Take the guesswork out of investing with a menu of funds and model portfoliosFootnotes3,4 Reduce your admin with a plan that's straight forward and easy to manage 74% of employees say that investing in their 401(k) and other accounts will help them build a nest egg.Footnote5 One-time set up feeFootnote*: $390 Monthly administration: $90 Footnote*Setup fee is non-refundable Monthly recordkeeping fees: $4.00 Annual asset based costsFootnote†: 0.52% Footnote† For investment fiduciary services (0.07%), participant servicing through the call center (0.20%) and account services for the ongoing product management, vendor oversight, trading and custodial services (0.25%).Footnotes3,4 Fees example: Sue has $10,000 in her account. This year, she will have approximately $52 withheld to cover the asset-based fee and $48 ($4 x 12 months) for recordkeeping fees. Any type of employer regardless of their business size can open a Small Business 401(k) plan, while a SIMPLE IRA is designed for businesses with 100 or fewer employees. Learn more about all small business solutions available at Merrill 1 Tell us about yourself and your business, and we'll customize a plan to fit your needs. 2 We'll send you a proposal for your review. If you want, you can modify plan features before purchasing. 3 After reviewing your proposal, you can purchase your plan online in just a few minutes. Request a 401(k) proposalpopup Need help? Speak with an Ascensus consultant for step-by-step guidance. Get more details about small business retirement plans available at Merrill and find the one that works best for your needs. SEP IRAplans at MerrillSIMPLE IRAplans at MerrillIndividual 401(k)plans at Merrill Interested in getting more details on self-employed retirement plans? Compare a Small Business 401(k), a SIMPLE IRA and a SEP IRAat Merrill. Expand all Corporations, partnerships and nonprofit organizations can establish Merrill Small Business 401(k) plans. If you're self employed or a sole proprietor, you may want to consider an Individual 401(k). Employer contributions are deductible by the business. Participant pre-tax contributions and earnings aren't taxed until they're withdrawn. For more information, Depending on the plan's terms, employers may match employee salary deferrals and/or make profit sharing contributions for eligible employees. An employer's contribution cannot exceed 25% of the employee's compensation (if you are self-employed, 20% of your net earnings from self-employment). Also, the maximum combined employer and employee contribution is the lesser of 100% of compensation or $69,000 for 2024Footnote9 (excluding catch-up contributions for those age 50 and older). The maximum compensation on which these contributions can be based is $345,000 for 2024.Footnote2 Employees may contribute up to $23,000 in 2024, or $30,500 for those 50 and older at any time in 2024. The maximum combined employer and employee contribution is the lesser of 100% of compensation or $69,000 for 2024 (for those age 50 and older, $76,500) per participating employee.Footnote2 It depends on the plan you select. Some plans don't require employer contributions. Others, such as safe harbor plans, do require a minimum contribution. Safe harbor plans automatically satisfy certain tax law nondiscrimination testing requirements. This plan type is designed to assure that your 401(k) plan is fair for all employees. With a safe harbor plan, employers are required to make contributions to employees' accounts, but there is some flexibility as to how they are made. For more information, There is a one-time setup fee of $390 for new plans and $390 for converting an existing 401(k) plan to Merrill. Once the plan is set up, the monthly administration fee is $90.Footnotes5,6 Employee contributions vest immediately. Employer contributions may vest over time according to the terms of the plan selected, but employer safe harbor contributions vest immediately. You can choose from funds and/or model portfolios selected by Morningstar Investment Management LLC. Participants also have access to educational call center support from Ascensus and a suite of online investor-education resources.Footnote1 Yes. For more information, read "Know the facts about loans and withdrawals" (PDF).Footnote8 The deadline to establish a new plan depends on the type of plan you want to adopt and the type of contributions you want to be available for the first plan year. If you want employees to be able to make contributions, you will generally want to allow enough time for them to do so before the plan year ends. However, if you want to adopt a safe harbor plan, your deadline to establish the plan is October 1 of the plan year assuming you establish a calendar year plan, but you will need to send a notice to participants at least 30 days before that. To adopt a non-safe harbor 401(k) plan, the deadline is the tax filing deadline (including extensions) for your business. However, only a profit sharing contribution could be made retroactively for the first plan year if you wait until the next tax year to adopt the plan. Sometimes. Employers with eligible W-2 employees are generally required to file an IRS Form 5500 annually. If required, a signature-ready Form 5500 will be prepared, at no extra cost, for employer review. The deadline(s) to purchase a safe harbor 401(k) plan are: The deadline(s) to purchase a traditional 401(k) plan for a 01/01 start date are: Footnote Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. Footnote1 Contribution limits apply for 2023, per tax law cost-of-living adjustment. Amounts for subsequent years may vary. Footnote2 Contribution and compensation limits are subject to a cost-of-living adjustment annually pursuant to the Internal Revenue Code. Contribution and compensation limits for subsequent years may vary. For more information visit the IRS websitepopup. You should talk to your legal and/or tax advisors before making any financial decisions. Footnote3 Plan- and participant-level administrative and recordkeeping services for Merrill Small Business 401(k) plans are provided by Ascensus. Investment advisory and fiduciary services are provided by Morningstar Investment Management LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar Investment Management LLC is a provider of investment management solutions, including investment advisory and retirement plan services. Educational call center support will be provided by Ascensus. Bank of America Corporation, Ascensus and Morningstar Investment Management LLC are not affiliated. Footnote4 Morningstar Investment Management LLC selects the investments and is responsible for the ongoing monitoring and maintenance of the investments and model portfolios. Merrill is responsible for ongoing product management and vendor oversight, as well as trading and custodial services of plan assets and monthly transaction statements. Footnote5 Learn more from the 2022 Bank of America Workplace Benefits report (PDF). Footnote6 Fees will be deducted from the business account. Footnote7 Fees will be deducted from each participant's account. Footnote8 Please consider the advantages and disadvantages of taking a loan before initiating one. Footnote9 While you can contribute a profit sharing contribution up to 100% of an employee's eligible compensation, you can only deduct up to 25%. MAP6101044-07092025 Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF). Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp"). Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp. Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Investment products offered through MLPF&S and insurance and annuity products offered through MLLA: Privacy|Security|Glossary|Advertising practicespopupAdvertising Practicespopup © 2024 Bank of America Corporation. All rights reserved. 4326521
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Frequently Asked Questions
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