SECURE Act 2.0: Employer Savings Plans
Employers, large and small, play a role in helping individuals save and plan for retirement. It’s no surprise that the Secure Act 2.0, which seeks to reform how Americans prepare for retirement, includes provisions that effect employers. Many of the new provisions target small businesses. The following Secure Act 2.0 provisions help employers offer effective retirement plan programs: Better Retirement Plan Start-Up Incentives (2023): Small businesses can take retirement plan start-up credits to offset up to 100% of their plan start-up costs (versus a prior 50% cap). A New “Starter 401(k)” Plan (effective 2024): The Starter 401(k) provides small businesses …
Introducing SECURE Act 2.0
The original SECURE Act was signed into law on December 20th, 2019. Its “sequel,” the SECURE Act 2.0, was similarly enacted at year-end on December 29th, 2022. Both pieces of legislation seek to reform how Americans prepare for retirement while juggling current spending needs. Its guiding goal is right there in the name: Setting Every Community Up for Retirement Enhancement (SECURE). We will dedicate our next several articles to spotlighting key changes brought about by the legislation and breaking down what these changes mean for you and your retirement. Keep in mind, implementation for each SECURE Act 2.0 provision varies …
