Eligibility options

With Smooth Start 401(k) PlanTM, the employer can choose between the following eligibility options

  •  90 days with quarterly entry dates
  •  1 year of service with 1000 hours and semi-annual entry dates
  •  1 year of service with no minimum hours and semi-annual entry dates

Plan Contributions Options

With Smooth Start 401(k) Plan, the employer has four options regarding employer contributions to the Plan. These apply to any eligible employees:

  1. A dollar for dollar match with a maximum employer match of 4% of compensation.
  2. A dollar for dollar match on first 3% of compensation plus a 50 cent match on the next 2% of pay contributed for a maximum match of 4% of compensation
  3. A dollar for dollar match with a maximum of 6% of compensation.
  4. A 3% of compensation contribution whether or not the employee contributes to the plan

For maximum convenience, the Smooth Start platform allows for both pre-tax and after-tax Roth deferrals.

Rollover Options

The Smooth Start 401(k) PlanTM supports pre-tax rollovers into the plan. So, it is an excellent option for employers converting from a SEP or SIMPLE IRA. It also provides employees the ability to consolidate 401(k) balances from other plans.
To keep things simple, the Smooth Start 401(k) PlanTM does not support Roth or after-tax rollovers. These rollover types are relatively rare.

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