They say timing is everything, and if there were ever a time to implement a 401(k) plan, the time is now. We first wrote about the Secure Act 2.0, in this post back in February 2023, a short time after it was signed into law by President Biden. One of the best parts of this act is that the government wants to give business owners money to start a plan AND even better, they want to give you money to give to your employees. This is accomplished in three different tax credits to small business owners, as covered below. Let’s…
Posts tagged as “401k”
Whether you are a working employee, someone in their retirement or an employer/plan sponsor, the SECURE 2.0 Act of 2022 has something for everyone. It was included as part of the Consolidated Appropriations Act, 2023, which was passed by Congress on December 23, 2022 and signed into law by President Biden on December 29, 2022. While there is something for everyone, we will focus on the areas in which it affects employers. Some items are effective this year while others will phase in over the next couple of years, but it may be a good idea to start planning today.…
There is a direct correlation between the size of an employer’s workforce and the likeliness of their offering a retirement plan. While about 92% of companies having greater than 10,000 employees offer a 401(k)-style plan, those with under 10 employees, the rate drops to 8%. The flip side is that 86% of employers do not offer a plan, which translates to about 68 million Americans without access to a employer-sponsored plan, and states have taken notice. Beginning in 2017, a number of states have implemented laws requiring smaller businesses to implement a plan with many more in the legislative proposal…