Help your small business clients add a 401(k) plan using SECURE 2.0 Act tax credits.

Set up retirement plans without breaking a sweat with Simply Retirement by Principal®. Our streamlined solution helps keep costs low and limits complexity.

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Create proposals faster anytime, on any device

Our simplified 401(k) plan design and onboarding processes save time so you can focus on client conversations instead of managing paperwork. Just plug in your compensation and make a few selections to create a proposal, and have your client complete the purchase. We can help your client with tasks like plan compliance testing and reporting.

What you need to develop a proposal (PDF)

Deliver value with predictable, no-guess pricing.

No surprises and no pricing changes as employees contribute.

Upfront

$500

One-time setup fee for bundled plans

Every month1

As low as $145 + $6 for every participant

Recordkeeping fee

Costs can be as low as $0 for 3 years, after SECURE 2.0 Act tax credits.2

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Give your clients a unique experience. They can expect:

  • Your expertise. Many small business owners prefer to work with a financial professional who can help them navigate options.
  • The ability to use tax credits. SECURE 2.0 Act 2022 tax credits of up to $5,000 per year can help offset your clients’ plan start-up expenses for the first three years.2
  • A way to meet state requirements. This product may help small businesses comply with any state mandates to offer a retirement solution to employees.

Ready to take the next step?

1

Confirm your credentials are in our system.

2

Complete the required client information.

3

Send the proposal to your client and have them complete the purchase.

4

After purchase, your client can create a login and finish setup.

Two experienced brands. One seamless solution.

Simply Retirement by Principal® is a collaboration between Principal® and Ubiquity Retirement + Savings®. Once your clients purchase a plan, they’ll manage it on the same digital platform used by more than 10,000 Ubiquity small business customers.3

1 Recordkeeping fee will be billed to business owners quarterly ($435 plus per-participant fees). Pricing shown applies when working with a third party administrator (TPA). With bundled pricing, the recordkeeping fee is $185 per month ($555 billed quarterly) plus per-participant fees. Custodial fees, investment fees, and financial professional and TPA fees (if applicable) are additional.
2 Start-up tax credit modification: Small employers with 50 or fewer employees may apply 100% of qualified start-up costs toward the tax credit formula (up to $5,000 per year). New tax credit for start-up plans offering employer contributions: A tax credit equal to the applicable percentage of employer contributions, capped at a maximum of $1,000 per employee.

  • Applicable to small employers with 50 or fewer employees.
  • For employees with 51–100 employees: The credit is phased out by reducing the amount of credit each year 2% for each employee in excess of 50.

Applicable Percentage: 1st and 2nd year = 100%, 3rd year = 75%, 4th year = 50%, 5th year = 25%, 6th year = 0%
No contributions may be counted for employees with wages in excess of $100,000 (inflation adjusted). If taking advantage of this tax credit, employer contributions may not also be counted toward “start-up costs” in the start-up tax credit calculation.

3 As of June 2021.

Simply Retirement by Principal® 401(k) plan recordkeeping, and administrative services are provided through Decimal, Inc. dba Ubiquity Retirement + Savings (“Ubiquity”). Ubiquity is not affiliated with any plan and investment administrative services provided through Principal Life Insurance Company® or affiliated with any company of the Principal Financial Group®. Principal makes available the Separate Accounts and collective investment trusts for customers to select them through Simply Retirement by Principal. All other services and mutual funds are provided by service providers not affiliated with any company of the Principal Financial Group. Refer to related documents and agreements for more details on plan services available.

Mutual fund, separate account and collective investment trust trade instructions are processed by Matrix Settlement & Clearance Services, LLC through the NSCC Membership of its affiliate, Matrix Trust Company.

Simply Retirement by Principal® requires a client service agreement between Ubiquity and the plan sponsor (Customer). In addition to and as part of the services, each Customer will sign separate agreements with the following parties: (i) custodian (ii) 3(38) investment manager, and (iii) Principal Life Insurance Company, a Comprehensive Retirement Program (PCRP) offered through the Modular Group Annuity Contract for separate accounts, and a declaration of trust for Principal collective investment funds. Simply Retirement by Principal services, costs and resources are subject to change.

2963202-062023

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This information is educational only and provided with the understanding that Principal® is not rendering consulting, legal, accounting, investment or tax advice. You should consult with appropriate individuals including counsel, financial professional or other advisors on all matters pertaining to business, legal, tax, investment or accounting obligations and requirements.

 

Insurance products and plan administrative services provided through Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392.
 

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