Truth: You can have a 401(k) plan without matching – it is completely optional. Around 22% of small business owners without a 401(k) plan say they don't have one because they can't afford to offer a company match.* This is another myth. Some companies provide no match, some manage costs and leverage as an employee retention tool via vesting schedules, some only provide a profit share when they have a good year, and some choose an immediately-vested match. Just know there are a lot of options and you can do whatever is right for your business. Learn more about a Safe Harbor 401(k) and benefits of a match. Tax and Cost Management Tip Giving your employees a 401(k) contribution, be it a match, profit share or other, is most always tax deductible for your business. This tax deduction helps keep 401(k) costs low so that it is more affordable and provides added incentive to help you and your employees save for retirement. Matching is often more of a cash flow decision versus an affordability issue when this is taken into account. Your tax advisor can help you sort out what works best.