Although a plan may finance contributions solely through salary reductions, a high employee contribution rate may create pressure on employers to provide salary increases to cover plan contributions. If you do decide that you want to match funds, you must then think about whether or not you'll be able to meet that ongoing financial obligation. Once the funds are in an account, they must be invested. This brings up another set of questions. While a broad range of investment options is one means of attracting more employee participation, it will also increase the complexity of plan administration.
Some plans allow employees to borrow against their money, with interest.
Allowing employees to borrow from the plan may encourage employee participation, especially among low-paid employees. Of course, it means additional administrative time and cost. The more flexible and sophisticated your plan is, the more complex and costly its administration becomes. Your best bet is to keep it as simple as possible. When your business grows, you can always make your retirement plans more sophisticated.