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Retirement Plans

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

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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

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Plan Setup

Setting up a 401(k) plan:
1

Choose Plan Type

Select Traditional 401(k), Safe Harbor, or other plan type
2

Set Eligibility

Define employee eligibility requirements
3

Configure Matching

Set employer match formula
4

Select Investments

Choose investment fund lineup
5

Launch Plan

Communicate to employees and begin enrollment

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Contribution Types

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

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Contribution Limits (2024)

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

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Employer Matching

Common matching formulas:
  • 50% match up to 6% - Match 0.50per0.50 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
Employer matching contributions are a powerful recruiting and retention tool

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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.

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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

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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
Include a qualified default investment alternative (QDIA) for automatic enrollments

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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
Early withdrawals (before age 59½) typically incur 10% penalty plus income taxes

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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

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Rollover Accounts

Employees can roll over retirement accounts from:
  • Previous employer 401(k) plans
  • Traditional IRAs
  • Roth IRAs (to Roth 401k)

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Retirement Planning Tools

Help employees plan for retirement:
  • Retirement calculators
  • Investment advice
  • Target retirement planning
  • Contribution recommendations
  • Educational webinars

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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