According to a recent Pew study, the top reason why small businesses do not sponsor a 401(k) plan today is cost. Higher tax credits may promote better implementation and utilization of corporate sponsored retirement plans.
Before the SECURE Act, a small business (up to 100 employees) could claim a tax credit equal to 50% of their retirement plan startup costs, up to a $500 limit.
Now, the limit is the greater of (1) $500 or (2) the lesser of (a) $250 multiplied by the number of non-highly compensated employees eligible for plan participation or (b) $5,000. This credit is available for up to three years.
Learn how to take advantage of these savings with the Neponset River Regional Chamber 401(k) Program.
Existing 401(k) Plans and Startup Plans can both benefit from this solution.
2 Options Available:
- Smaller businesses (2-10 employees) who have not established a retirement plan have access to a solution that can be implemented efficiently, and has straight-forward features and customization options.
- Larger businesses, or those with existing plans, can convert to a pooled employer plan solution with all the robust features essential to today’s retirement plans.
Want to learn more?
Click any date below to register for a free informational webinar:
