401(k) Plans for Space Coast Employers
For experienced engineers, operators, and high‑reliability support roles, a well‑run 401(k) can be the tie‑breaker: it signals commitment, supports financial wellness, and sets your offer apart. In short, a 401(k) plan for businesses on the Space Coast FL is your “we plan to keep you” flag.
What the 401(k) 2026 rules mean
Employee deferrals (401(k)/403(b)/most 457):
Total annual additions (employee + employer):
Catch‑ups:
- Age 50+: $8,000 (standard catch‑up)
- Ages 60–63 in 2025: $11,250 (“super catch‑up”).
Heads‑up for higher earners:
Why this matters on the Space Coast
Source for limits and the Roth catch‑up transition: IRS Notice 2024‑80 (2025 cost‑of‑living adjustments) and IRS Notice 2023‑62 (Roth catch‑up delayed to 2026).
Choose a small business 401(k) plan design that actually fits
Traditional 401(k)
This plan is best if you want maximum flexibility on employer contributions/vesting. It requires annual nondiscrimination (ADP/ACP) and potentially top‑heavy testing.
Safe Harbor 401(k)
This plan is great for owner/exec groups or smaller teams that dislike testing surprises. You make a required contribution with immediate vesting. In return, most testing headaches go away, and highly compensated employees can defer fully.
PEP/MEP (Pooled/Multiple‑Employer Plan)
This plan is useful for small firms looking to outsource more administration and potentially get scale pricing via a pooled structure.
(For IRS overviews on establishing 401(k) types and what’s required, see the IRS plan sponsor guide.)
What to prep before you launch
Data & decisions
- Employee census: eligibility, compensation, tenure, ownership status.
- Budget & match policy: Safe Harbor or discretionary; set vesting where allowed.
- Payroll/HRIS plumbing: deferral processing, Roth availability, loan/hardship support, and optional auto‑enroll.
- Investments: pick a QDIA (often a target‑date series), keep an index‑heavy core; decide on any brokerage window, and document the why.
- Service model: recordkeeper + custodian, TPA, and (optionally) a fiduciary adviser (3(21) or 3(38)); ERISA counsel for edge cases.
- Governance kit: committee charter, Investment Policy Statement (IPS), meeting cadence, fee‑review schedule, minutes template.
Official “what to have on file” resources (complete lists & steps)
- IRS: 401(k) Resource Guide—Starting up your plan (plan document options, SPD/SAR, trust, deposit timing, Form 5500 basics).
- DOL: Meeting Your Fiduciary Responsibilities (what ERISA expects of plan fiduciaries).
Launch checklist (and how to keep it clean)
1. Choose the plan type and sign the plan document.
2. Open the trust. Then, select the recordkeeper, custodian, TPA, and (if desired) adviser.
3. Integrate payroll, then dry‑run deferrals and loan/payback feeds.
4. Educate & enroll, then deliver SPD and required fee disclosures.
5. Operate the plan:
deposit deferrals as soon as reasonably segregated from assets, then monitor loans/distributions. Next, track eligibility and your QDIA. (See IRS timing guidance.)
6. Annual compliance: ADP/ACP (unless Safe Harbor), Form 5500, audit if you cross large‑plan thresholds.
Benchmark and document:
every 2–3 years, run a structured review or light RFP on admin/advisory/investment fees. Don’t forget to keep minutes. (See DOL fee guidance.)
Quick comparison: 401(k) vs. SIMPLE vs. SEP
Quick comparison: 401(k) vs. SIMPLE vs. SEP
| Feature | 401(k) | SIMPLE 401(k) / SIMPLE IRA | SEP IRA |
| Typical employer size | Any | ≤100 employees | Any |
| 2025 employee deferral | 2025 employee deferral | $16,500 (+ SIMPLE catch‑ups) | N/A (employer‑only) |
| Employer contributions | Optional or required (Safe Harbor) | Required by formula | Employer‑only (up to 25% of comp) |
| 2025 total additions |
Up to $70,000 (excl. catch‑ups) | Lower than 401(k) | Up to $70,000 |
| Testing | Yes (unless Safe Harbor) | No ADP/ACP | No ADP/ACP |
| Admin & filings | More involved; 5500 required | Simpler | Simpler |
| Good fit | Growth employers wanting higher limits + flexibility | Lean teams favoring simplicity | Owner‑heavy or variable‑profit firms |
Should you hire a fiduciary adviser?
| Option | Pros | Cons |
| DIY / provider‑only | Fewer vendors; visibly lower advisory fees. | Heavier fiduciary burden; weaker fee benchmarking; investment/menu oversight is on you; harder to demonstrate prudence in files. |
| Hire a 3(21) / 3(38) fiduciary adviser | Help with IPS, menu/QDIA design, fee benchmarking, provider RFPs, participant education; stronger documentation trail. | Advisory fees add to all‑in cost—confirm services are necessary and fees are reasonable. |
Florida & multi‑state realities
- Florida: No state‑mandated private‑employer retirement program as of November 2025. You’re free to sponsor your own plan.
- If you employ in other states, some do mandate enrollment in their state auto‑IRA if you don’t offer a plan. Check deadlines/penalties when hiring there. (Georgetown CRI maintains an up‑to‑date map of program states.)
Why Starting Your 401(k) Now Beats Waiting
| Start Now | Wait | |
| Tax credits | You can use SECURE 2.0 small-business credits immediately, covering much (and sometimes all) of eligible startup costs for the first three years, plus an extra credit tied to early employer contributions. | The credit clock doesn’t start until your plan is live. Delaying means pushing those three credit years further out and leaving potential savings on the table. |
| Recruiting & retention | You show candidates a real, functioning plan with a clear match and straightforward design, which is an immediate edge in a competitive market. | Offers look weaker against employers with mature 401(k) plans, which can quietly lower your offer-acceptance rate and push good people elsewhere. |
| Participant outcomes | Employees start contributing sooner, so compounding works in their favor. Auto-enrollment and a simple match formula can boost participation and financial wellness quickly. | Employees miss out on years of contributions and growth. When you eventually launch, adoption may be slower and balances smaller than they could have been. |
| Roth catch-up changes | You have more runway to coordinate payroll, recordkeeping, and communication before the 2026 Roth catch-up rules for higher earners fully apply. | Implementation gets more rushed as 2026 approaches, increasing the risk of confusion, errors, or last-minute configuration fixes. |
Ready to build a small‑business 401(k) that wins talent?
Whether you’re designing from scratch or upgrading an existing program, Thoughtful Advisors is a Space Coast–based, independent fiduciary (CFP®, ChFC®, AIF®) with a clean compliance record over 25+ years.
We design and manage tax‑smart, transparent 401(k) employer services Brevard County locals can count on, from payroll integration to fee benchmarking to ongoing compliance, so you can focus on growth.
If you’ve been online searching phrases like “401(k) plan provider near me,” now is the perfect time to reach out to Thoughtful Advisors for employer retirement benefits consulting.
Disclaimer: This guide is educational, not tax or investment advice. Always confirm current IRS limits and your plan’s document before acting.