Receive tax breaks that add up
Employer contributions and plan expenses are generally tax deductible by your business. If this is your first 401(k) plan and you have 100 or fewer employees, you may also benefit from a tax credit of up to $500 for 3 years.Footnote 2 For more information, read the tax benefits fact sheet (PDF).
Attract and retain talented employees
86% of small-company workers consider a 401(k) or similar plan important.Footnote 3 With a Merrill Edge Small Business 401(k), they can contribute more than 3 times the limit of a Traditional IRA.
Focus on your business, not your retirement plan
Stay focused on running your business with plan administration and recordkeeping support from Plan Administrators, Inc. (PAi).Footnote 1 Online access to your plan is also available 24/7.
Get advice and guidance
Funds and model portfolios — selected and managed by Morningstar Investment Management LLC — help take the guesswork out of investing for you and your employees. Plan participants also have access to educational call-center support from Plan Administrators, Inc. (PAi) and a suite of online investor-education resources.Footnote 1
Important 2017 plan establishment deadlines
Safe harbor 401(k) plan: 9/26/2017
All other 401(k) plans: 12/27/2017

86% of small company workers consider a 401(k) or similar plan important.Footnote 3

86%
of small company workers
consider a 401(k)
or similar plan important.Footnote 3
or similar plan important.Footnote 3

Pricing and fees

Pricing and fees

Straightforward, low-cost pricing for your businessFootnote 4

One-time setup fee*:
$390**
Monthly administration:
$90
* Setup fee is non-refundable
** $1,390 if converting an existing 401(k) plan to Merrill Edge
Special offer: Convert your existing 401(k) to a Merrill Edge Small Business 401(k) now through September 30, 2017, and we'll reduce the conversion fee from $1,390 to $500. Applies to converted plans only. Other plan and participant fees still apply.
You may save money converting your current 401(k) plan to a Merrill Edge Small Business 401(k).
Compare your current plan's pricing (PDF)

Fees paid by each individual participating in the planFootnote 5

Monthly recordkeeping fees:
$4
Annual asset-based costs:
0.52%
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%).Footnotes 1, 6
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.

How to open a 401(k)

How to open a 401(k)

Answer a few questions

Tell us about yourself and your business, and we'll customize a plan to fit your needs.

Review your proposal

You can modify the features, if you wish, before purchasing.

Purchase your plan

After reviewing your proposal, you can purchase your plan online in just a few minutes.
Receive a custom proposal online in as little as 5 minutes. Need help? Step-by-step guidance is available by phone from a PAiFootnote 1 401(k) Consultant.

FAQs

FAQs
Corporations, partnerships and nonprofit organizations can establish Merrill Edge Small Business 401(k) plans. If you're self employed or a sole proprietorship, 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, read the guide to tax benefits (PDF).
  • Employers may match employee salary deferrals
  • Employers may make a profit sharing contribution for each eligible employee of up to the lesser of 25% of compensation or $54,000 for 2017 ($53,000 for 2016)
  • The maximum compensation on which contributions can be based is $270,000 for 2017 ($265,000 for 2016)
  • Employees may contribute up to $18,000 ($24,000 for those 50 and older)
  • The maximum combined employer and employee contribution is the lesser of 100% of compensation or $54,000 for 2017 and $53,000 for 2016 (for those age 50 and older, $60,000 for 2017 and $59,000 for 2016) per participating employee

More about small business retirement plans

Employer

Self employed

More about small business retirement plans

Employer

Self employed

Need help setting up your plan?

Call 866.890.4177866.890.4177
Mon-Fri 8 a.m. - 5 p.m. CT to speak with a PAiFootnote 1 401(k) Consultant

Important disclosures

Footnote 1 Plan- and participant-level administrative and recordkeeping services for Merrill Edge Small Business 401(k) plans are provided by Plan Administrators, Inc. (PAi). 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 PAi. Bank of America Corporation, PAi and Morningstar Investment Management LLC are not affiliated.
Footnote 3 Transamerica 16th Annual Retirement Survey, 2015.
Footnote 4 Fees will be deducted from the business account.
Footnote 5 Fees will be deducted from each participant's account.
Footnote 6 Morningstar Investment Management LLC selects the investments and is responsible for the ongoing monitoring and maintenance of the investments and model portfolios. Merrill Lynch is responsible for ongoing product management and vendor oversight, as well as trading and custodial services of plan assets and monthly transaction statements.
Footnote 7 Contribution and compensation limits apply for 2015-2017 and are subject to a cost-of-living adjustment annually pursuant to the Internal Revenue Code. Contribution and compensation limits for subsequent years may vary.
ARYDKVJD-EXP093017
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Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Neither Merrill Lynch nor any of its affiliates or financial advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Merrill Edge is available through Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S), and consists of the Merrill Edge Advisory Center (investment guidance) and self-directed online investing.

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:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value


MLPF&S is a registered broker-dealer, Member Securities Investor Protection Corporation (SIPC)Member Securities Investor Protection Corporation (SIPC) and a wholly owned subsidiary of Bank of America Corporation.

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