I am currently buying a business and will have 1-employee (and hopefully more as I grow). I intend to start a new 401k for this business.
My question is about the employer contribution to the 401k. Does it have to be equitable?
By that I mean, could I give my employee something like 3% of their salary as a benefit but contribute whatever % to myself until I hit the max of $57k between employee/employer contributions (assuming that’s within the 25% cap)? Or does the employer contribution need to be the same salary percentage for both my employer and myself?