Advantage(k) Traditional 401(k)

Why Employers Choose a Traditional 401(k)

• The Traditional 401(k) offers flexibility for businesses that want greater control over contribution decisions and plan strategy.

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    Key Benefits

    • Greater flexibility over employer contributions
    • Ability to decide contribution levels annually
    • Supports varying business goals and budgets
    • Opportunity to reward employees through discretionary contributions
    • Customizable retirement plan strategy
    • Flexible approach as business needs evolve
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    Plan Features

    Eligibility

    • Age 21 requirement
    • One year of service and 1,000 hours worked
    • Quarterly entry dates

    Employee Contributions

    • Pre-tax contributions
    • Roth contributions
    • Catch-up contributions

    Employer Contributions

    • Discretionary matching contribution
    • Discretionary profit-sharing contribution
    • Employer contribution decisions made annually

    Automatic Enrollment

    • 10% automatic enrollment
    • Eligible employees automatically enrolled unless they elect otherwise

    Participant Features

    • Participant loans permitted
    • Hardship withdrawals available
    • In-service withdrawals available at age 59½

    Vesting

    • Discretionary matching contributions subject to a 6-year graded vesting schedule
    • Discretionary profit-sharing contributions subject to a 6-year graded vesting schedule
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    Advantage(k) Key Plan Provisions (Traditional 401(k))

    Eligibility	Service requirement: 1 Year of Service (1,000 hours worked in a 12-month computation period, which is the anniversary year then switches to the plan year) Age requirement: 21 Entry dates: Quarterly
    Compensation	W-2 Compensation Exclude fringe Include post-severance
    Excluded Classes	Union employees Leased employees Non-resident aliens
    Employee Deferrals	Pre-tax Roth Allow Catch-up *Due to the inclusion of both Roth and Catch-up Provisions in your Plan, special instructions will be included in your DocuSign reflecting our recommendation to use a Deemed Election for Highly Paid Individuals.
    Automatic Enrollment	Initial percentage: 10% Permissible withdrawals are allowed in the first 90 days after the first automatic deferral
    Discretionary Matching Contribution	Determination period: Plan Year (true up required if deposited more frequently) Compensation prior to participation is excluded Allocation requirements: None
    Discretionary Profit Sharing Contribution	Method: New Comp (Cross Tested) Compensation prior to participation is excluded Allocation requirements: Employed on the last day of the applicable plan year AND work 1,000+ hours in the applicable plan year
    Vesting	Discretionary Employer Match: 6-year graded Discretionary Employer Profit Sharing: 6-year graded Exclusions: service prior to age 18
    In-Service Withdrawals Available	From rollover source at any time Hardship withdrawals from all sources with no limitations Age 59.5 in-service withdrawals from all sources with no limitations Loans permitted

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    How the Traditional 401(k) Works

    With Advantage(k) Traditional, employees can make pre-tax, Roth, and catch-up contributions, while employers decide each year whether to make matching or profit-sharing contributions. The plan offers maximum flexibility, allowing contribution strategies to align with changing business goals and budgets.

    Employer Contribution Options

    • Discretionary matching contributions
    • Discretionary profit-sharing contributions
    • Annual flexibility to adjust contribution levels

    Why Employers Choose Traditional 401(k)

    Traditional 401(k) plans provide the freedom to customize contribution strategies, reward employees, and adapt as business needs evolve.

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    Why Businesses Select This Plan

    Maximum Flexibility

    Adjust contribution strategies based on business performance, budget considerations, and workforce objectives.

    Design It Your Way

    Customize your plan to align with company goals while maintaining flexibility over employer contribution decisions.

    Reward Performance

    Use discretionary matching and profit-sharing contributions to recognize employee contributions and company success.

    Adapt as You Grow

    As your business evolves, your retirement plan strategy can evolve alongside it.

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    Compare Plan Designs

    Feature	Traditional 401(k)	Safe Harbor Match	Safe Harbor Non-Elective
    Employer Contributions	Discretionary	Required Match Formula	Required 3% Contribution
    Contribution Flexibility	Highest	Moderate	Moderate
    Employee Participation Influences Contributions	Optional	Yes	No
    Employer Match Required	No	Yes	No
    Annual Testing	May Be Required	Generally Simplified	Generally Simplified
    Best For	Employers seeking maximum flexibility	Employers encouraging employee savings	Employers seeking predictable contributions

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    This plan may be a strong fit if you:

    • Want flexibility over annual employer contributions
    • Prefer to determine contribution levels each year
    • Have changing budgets or business priorities
    • Want to customize your overall retirement strategy
    • Are interested in rewarding employee performance through discretionary contributions
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    This option may be less appropriate if you:

    • Want a plan structure specifically designed to help simplify annual nondiscrimination testing
    • Prefer a predefined employer contribution formula
    • Want a contribution strategy based on employee participation or a fixed employer contribution
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    You're in Control

    Unlike Safe Harbor plans that require a defined employer contribution, a Traditional 401(k) gives employers the ability to determine whether employer contributions will be made and how much to contribute each year.

    Available Contribution Options

    • Employee pre-tax contributions
    • Employee Roth contributions
    • Catch-up contributions for eligible participants
    • Discretionary employer matching contributions
    • Discretionary profit-sharing contributions
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    Common Features Included

    All Advantage(k) Start plan designs include:

    • Online document execution
    • Guided implementation
    • Ongoing plan administration
    • Compliance support
    • Employee enrollment resources
    • Payroll integration support
    • Pre-tax contribution options
    • Roth contribution options
    • Catch-up contributions
    • Automatic enrollment provisions