Small Businesses: Rethinking 401(k) Accessibility

For many small business owners, the idea of offering a 401(k) plan might seem complex or costly. Yet, it's time to challenge that outdated notion. Managing a business while juggling employee benefits isn't easy, but thanks to SECURE 2.0, retirement plans have become more accessible, affordable, and beneficial for both employers and employees.

Let's dispel some myths and show why now is the perfect time to consider offering a 401(k):

• Currently, fewer than one in four small businesses offer a 401(k), but this number is growing.
• Businesses with up to 100 employees can qualify for up to $5,000 per year in tax credits for plan startup costs over the first three years.
• Employees must have earned at least $5,000 in the prior year to qualify for participation.
• An additional credit of up to $1,000 per employee is available for employer contributions.
• Auto-enrollment boosts participation and is becoming standard for most new 401(k) plans.
• A well-designed plan can attract and retain top talent while lowering taxable income, as both plan expenses and employer contributions are tax-deductible.
• Now more than ever, flexible and affordable options make offering a retirement plan a smart move.

Offering a 401(k) is no longer a heavy administrative or financial burden. Explore your options today to stay competitive in attracting talent. Speak with a financial or benefits advisor to create a plan tailored specifically to your business needs.