Small Businesses: Embrace 401(k) Benefits Today

It's time to challenge the outdated notion that 401(k) plans are too complex or expensive for small businesses. We understand the struggles of running a business while managing employee benefits. Thankfully, recent changes under SECURE 2.0 have made retirement plans more accessible, affordable, and beneficial for both employers and employees. Let's rethink the assumptions about 401(k)s in today’s market.

The Growing Presence of 401(k)s

Did you know fewer than one in four small businesses currently offer a 401(k)? The number is growing, though, as more businesses realize the benefits.

Tax Credits for Small Businesses

• Businesses with up to 100 employees may qualify for up to $5,000 per year in tax credits for plan startup costs for the first three years.
• An additional credit of up to $1,000 per employee is available for employer contributions.

Employees must have earned at least $5,000 in the prior year to qualify.

Boost Participation with Auto-Enrollment

Auto-enrollment is now standard for most new 401(k) plans, and it significantly boosts participation rates.

Attract and Retain Talent

A well-designed plan does more than prepare your employees for retirement—it helps attract and retain top talent. Both plan expenses and employer contributions are tax-deductible, effectively lowering taxable income.

Why Now is the Ideal Time

Affordable and flexible options have made this the perfect time to consider offering a retirement plan. Offering a 401(k) is no longer a heavy administrative or financial burden for small businesses.

Explore your options now to stay competitive in attracting talent. We urge you to speak with a financial or benefits advisor to create a plan tailored to your needs.

 

This content is for informational purposes only and does not constitute a recommendation or personalized financial advice.