Why Now is the Time to Start Your Small Business Retirement Plan

Are you looking to enhance your employee recruitment and retention efforts? The recent implementation of SECURE 2.0 Act has enhanced and added new tax credits for eligible employers with 100 or fewer employees. If you're thinking of adding a retirement plan to your total rewards package, now is the right time to take advantage of these tax incentives and give your employees the benefits they deserve.

1. Administrative Costs (up to 50 employees*)

Employers may be able to receive up to $5,000 per year in an enhanced tax credit for the first three years of the plan resulting in a total $15,000 of potential savings. This annual savings is another way to reinvest in your valued employees by not only offering a desired employee benefit, but also offsetting your new retirement plan’s administrative costs.

2.  Employer Contribution (up to 50 employees*)

Employers may be able to claim a new tax credit based on a percentage of plan contributions you make on behalf of participants for up to five years, up to $1,000 per employee (those making $100,000 or less in the prior year). Years one and two receive 100% of the tax credit, with following years reducing the credit each year (e.g., 25% tax credit in year five).

3. Auto-Enrollment* (up to 100 employees)

Choosing to incorporate auto-enrollment into your retirement plan for eligible employees may result in a $500 tax credit per year for up to three years.

These enhanced and new tax credits from SECURE 2.0 legislation may offset costs for you while helping your employees take the next step to improve their financial wellness and save for a successful retirement.

Ask for more information about the tax credits* available or how to get started. Contact us at info@standardpensionservices.com or call (516) 873-0090.

*These tax credits are available in reduced amounts for employers with 51 – 100 employees. Please consult with your tax advisor to ensure any of the above tax credits apply to your organization.

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