<strong>Small Business 401(k)s: Rethink Your Retirement Plan Strategy</strong>

For many small business owners, the idea of offering a 401(k) plan might seem daunting, both in complexity and cost. However, the reality is that these perceptions are increasingly outdated. Running a business is demanding, and balancing employee benefits alongside daily operations is no small feat. But thanks to recent legislative changes, offering retirement plans has become more accessible and beneficial than ever before.

Rethink Small Business 401(k) Plans

Recent updates under SECURE 2.0 have reshaped the landscape for small business retirement plans. These changes mean:

• Fewer than one in four small businesses currently offer a 401(k), but this number is growing as awareness and accessibility improve.
• 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.
• An additional credit of up to $1,000 per employee is available for employer contributions, making it easier for you to support your team’s future.
• Auto-enrollment is now standard for most new 401(k) plans, significantly boosting employee participation rates.

Benefits Beyond the Basics

Implementing a well-designed 401(k) plan can yield multiple benefits:

• Attract and retain top talent with competitive benefits packages.
• Lower your taxable income, as both plan expenses and employer contributions are tax-deductible.

Thanks to more flexible and affordable options, there has never been a better time for small businesses to consider offering a retirement plan.

A Call to Action

Today’s 401(k) plans are no longer a heavy administrative or financial burden. To remain competitive and attract the talent you need, explore the available options now. We encourage you to speak with a financial or benefits advisor who can tailor a plan to fit your unique business needs.