Associates, paralegals, and staff count toward the mandate — and partners deserve better limits than a state IRA. Both handled.
Associates, paralegals, and administrative staff are W-2 employees that count toward the threshold.
Partners want tax-advantaged, higher-limit retirement options — the state IRA caps out at IRA levels.
A real 401(k) with a match helps you recruit and keep associates in a competitive market.
Profit-sharing, vesting schedules, safe-harbor design — a firm 401(k) flexes where the auto-IRA can't.
Pick your state and headcount for your real exposure — data verified against each state's own statute.
Informational only — not legal or tax advice.
Get your full breakdown + a private-plan savings estimate:
Under SECURE 2.0, small employers starting a plan can claim credits toward setup and contributions. The amount depends on your size and phases out over the first years — we model your real number, not a headline.
See what you'd qualify forGenerally no — partners compensated on K-1 typically aren't W-2 employees. Associates, paralegals, and staff are. Entity structure matters, so we confirm your exact count under your state's definition.
Yes — but the mandate is about covering eligible employees. A qualifying firm plan can cover staff and give partners far higher contribution room at the same time; we design both sides together.
Sometimes, for very small firms wanting zero administration. But for most firms the recruiting value and partner limits of a 401(k) — with SECURE 2.0 credits offsetting setup — argue the other way. We show you both with real numbers.
Book a free 15-minute compliance audit. We'll show your exact requirement, your real exposure, and whether your own plan saves you money.
Grab the free 2026 cheat-sheet: every state's threshold, deadline, and penalty on one page.