If you own a business, you know that opening a retirement plan can be challenging. But it may soon be getting easier. That’s because Congress recently passed the SECURE Act, which includes a number of provisions that can help you open a 401(k) or similar retirement plan.
For one thing, the maximum tax credit for establishing a retirement plan has been increased from $500 to $5000, although some restrictions apply. Also, some smaller employers who set up automatic enrollment in their retirement plans can now receive a tax credit of $500.
And you can now band together with other companies to offer employees a 401(k) plan with less administrative work and fewer fiduciary responsibilities than you’d incur on your own.
Of course, you still have access to other good retirement plans for your business, such as a SEP-IRA and a SIMPLE IRA. Consult with your tax and financial advisors to determine which plan is right for you.
A retirement plan is a great tool for attracting and retaining good employees – not to mention helping you build resources for your own days as a retiree.
If you have any questions please contact me at 980-859-2549 or by e-mail at Brandon.Monette@edwardjones.com
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.