401(k) plans have long been a popular option for employers looking to give their employees an opportunity to save for retirement and help them save money for the future. But while the 401(k) plan has certainly stood the test of time, it’s not the only 401-related retirement plan option out there.

Enter the duo 401(k), or commonly known as the “duo-k” plan. This newer form of 401(k) plan is quickly gaining traction as a viable option for business owners, entrepreneurs, and self-employed individuals looking to provide retirement benefits to their employees.

So what makes duo-k plans so attractive? Well, for starters, the duo-k plan is incredibly flexible and can be tailored to meet both employer and employee needs. Unlike traditional 401(k) plans, duo-k plans allow employers and employees to choose from multiple contribution types, investment options, and withdrawal strategies. This makes it easy for employers to customize their retirement plan to suit the specific needs of their company and their employees.

Another great benefit of duo-k plans is that they offer more options for higher contributions, giving employers and employees the chance to save even more for their retirement. The duo-k plan allows for an employer match of up to 25% of the salary deferral contributions of an employee, meaning that if an individual is able to contribute a full 10% of their salary, their employer can contribute up to an additional 2.5%. Additionally, duo-k plans allow employees to make after-tax contributions. This means that by contributing to an after-tax account, they are eligible to take out their contributions and earnings with no taxes or penalties anytime after age 59 ½ – typically a great option for younger employees who don’t have enough taxable income to make traditional IRA contributions.

Because duo-k plans are relatively new, you may not find your local bank or financial institution offering them. But there are financial advisors and third-party administrators who specialize in duo-k plans and can provide you with the support and guidance you need to get started.

For companies looking to provide employees with an opportunity to save, duo-k plans give employers the chance to provide generous retirement savings benefits to employees. When considering what retirement plan to offer, always make sure to do your research and consider the advantages and disadvantages of each option. Remember, with any retirement plan, the most important question to ask is: will this plan be beneficial for both employer and employee in the long run?