Many small business owners still believe that 401(k) plans are too daunting or costly. However, recent changes under SECURE 2.0 have transformed these retirement plans, making them more accessible and beneficial for both employers and employees.

Why Rethink 401(k)s?

Running a business while managing employee benefits is no small feat. Yet, only about one in four small businesses currently offers a 401(k), although this number is growing. With new incentives, it's time to challenge old assumptions about these plans' complexity and cost.

Tax Credits and Benefits

• Small businesses with up to 100 employees may qualify for up to $5,000 per year in tax credits for plan startup costs for the first three years.
• There is an additional credit of up to $1,000 per employee for employer contributions.

Additionally, a well-crafted plan can help attract and retain top talent while reducing taxable income, since plan expenses and employer contributions are tax-deductible.

Standard Auto-Enrollment

Auto-enrollment is now the norm for many new 401(k) plans, significantly boosting participation rates and making life easier for both employees and employers.

The Flexibility and Affordability of Today's Plans

• There are now more flexible and affordable options available than ever before.
• A modern 401(k) plan reduces the administrative and financial burden previously associated with these benefits.

Take Action Now

Offering a 401(k) is no longer a heavy administrative or financial burden for small businesses. This is your opportunity to stay competitive in attracting and retaining talent. Explore your options today by consulting with a financial or benefits advisor to craft a plan tailored to your needs.