From Zero to $3 Million: How a Tech Startup Built a Competitive 401(k) Plan in Three Years
Key Numbers*
Plan Assets
at Launch (2022)
$0
Plan Assets
Now (2025)
$3.1M
* Data as of October 2025.
Subject to change.
Proactive Education
Our 401(k) advisor travels to Meridian Tech’s various locations to provide education specifically for employee demographics who are not contributing or undercontributing to the plan.
For example, we provided a seminar demonstrating the real difference between saving 5% versus saving 10% for a 27-year-old over the course of their career.
Additionally, when younger employees began requesting hardship distributions, we implemented a self-certification process that reduced plan sponsor liability while also providing education.
Before taking any hardship distributions, employees speak with a TrueNorth advisor to review allowed reasons, explore alternatives, and understand implications.
We’re always available. Employees can schedule one-on-one consultations with a TrueNorth advisor for any reason at no additional cost.
When Meridian Tech spun off from a legacy auto dealership in 2022, the founders knew their outdated 401(k) wouldn’t attract the tech talent they required. They needed a modern benefits package that could compete in a demanding market, and they needed it fast.
Three years later, their plan has grown from zero to over $3 million in assets, supporting nearly 300 employees across multiple states.
The Vision
As a tech startup competing for talent against established companies, Meridian Tech required a 401(k) plan that would stand out: a modern platform, immediate eligibility, and strong matching.
To get there, they needed expert guidance to navigate the complexity of spinning off from a parent company while their lean HR team focused on rapid growth.
Meet Meridian Tech
- Meridian Tech operates at the intersection of technology and auto financing, providing innovative lease buyout solutions. Conceptualized in 2018 and formally founded shortly after, the company began working with TrueNorth in 2022 when they had just a handful of employees and big growth ambitions.
- The legacy dealership’s 401(k) plan wasn’t designed for a tech startup. The eligibility requirements felt dated, the features didn’t align with what tech employees expected, and the plan structure wouldn’t support Meridian’s aggressive hiring goals.
- They needed to start fresh, but building a compliant, modern 401(k) from scratch while managing the transitioning of existing employees from the old plan created significant complexity.
- Employees from the parent company faced forfeiture of unvested funds in the old 401(k) — legally unavoidable, but requiring creative solutions to maintain goodwill.
- For a startup without full-time HR expertise in 401(k) management, these challenges felt impossible to overcome.
TrueNorth Wealth Process
We recognized that Meridian Tech needed speed without sacrificing compliance. While they focused on building their business, we handled the complexity, coordinating with ERISA attorneys, filing appropriate IRS forms, designing a plan that would attract tech talent, and creating processes that wouldn’t burden their lean HR team.
Our goal was to make the 401(k) a competitive advantage, not an administrative headache.
Our Strategic Solutions
- We implemented immediate eligibility, allowing new hires to participate from their first day. Their safe harbor match provided a 4% employer contribution when employees deferred 5%, which was competitive for attracting quality talent.
- As the company matured, we adjusted eligibility to a two-month window for high-turnover roles, reducing unnecessary account openings and administrative burden.
- We take responsibility for the 401(k)’s investment decisions. We regularly review the investments, keep clear records of those decisions, meet once a year to review the plan, and train the leadership team on their responsibilities. This lowers risk for the business and helps ensure the plan is prepared for a Department of Labor audit.
- We deliver quarterly webinars to all employees, covering timely financial topics that help them make smarter decisions about their retirement savings.
Where They Are Now
Meridian Tech has grown from two co-founders to nearly 300 employees across Idaho and Utah, with clients in all 50 states. Their 401(k) has grown from zero to $3.1 million in just three years, a remarkable growth that reflects both successful hiring and strong employee participation.
The plan has become a genuine recruiting and retention tool rather than a checkbox benefit. Employees regularly attend education sessions, ask thoughtful questions, and increase their savings rates after one-on-one consultations. When HR has 401(k) questions or issues arise, their first call is to TrueNorth rather than the recordkeeper or administrator.
But most importantly, the 401(k) runs smoothly without consuming too much of HR’s limited bandwidth. The compliance complexity, investment oversight, and employee education all happen in partnership with TrueNorth, allowing Meridian’s team to focus on building their business.
This case study is based on a real client situation with names and certain details changed to protect privacy. Results may vary, and past performance is not indicative of future results.
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