Is a 401(k) Plan Right for Your Small Business?

Many small business owners have long believed that 401(k) plans are too complex or expensive. But is this really the case? With recent updates through SECURE 2.0, offering a 401(k) is becoming more accessible and advantageous for businesses and employees alike.

What's Changed with 401(k) Plans?

 

Considering the landscape of retirement planning has evolved, businesses with up to 100 employees can now enjoy up to $5,000 per year in tax credits for plan startup costs during the first three years.

How Do Employees Benefit?

 

Employees need only have earned $5,000 in the prior year to qualify, and there’s an additional credit of up to $1,000 per employee for employer contributions. Auto-enrollment is also standard in most new plans, increasing participation rates.

Why Should Your Business Consider a 401(k) Plan?

 

A well-structured 401(k) plan can help attract and retain top talent while reducing taxable income, as both plan expenses and employer contributions are tax-deductible. Flexible and affordable options make it an opportune time to explore implementing a retirement plan.

Offering a 401(k) doesn't have to be burdensome. We encourage you to contact us to consult with a financial advisor to see if a 401(k) plan would make sense for your business.