How does the SECURE Act help small businesses?
Passed in 2019, the Secure Act includes incentives in the form of tax credits for businesses to start a retirement plan. These credits can apply to a variety of retirement plans including 401(k)’s, SEP IRA’s and Simple IRA’s. Here are the start-up tax credits at a glance:
- The tax credit can apply to the first three years the retirement plan is in place
- Credit = 50% of employer plan costs
- Maximum credit is $500, or up to $5000 based on formula
- Formula: $250 x the number of eligible (non-highly compensated employees), not to exceed $5000
Have you been thinking of setting up a retirement plan?
As a small business owner, working with the right team can make all the difference. Our experienced team can help you and your business find the right retirement plan to meet your goals and take full advantage of these tax credits.
Already have a retirement plan setup?
For those employers who currently have an existing retirement plan, we offer a complimentary review and plan cost analysis.
At Storen Financial, we offer year-round, comprehensive options that implement tax-saving strategies to help individual and business clients pursue financial goals. Have questions? Want to learn more. Schedule an appointment with me today!
Here’s What the SECURE Act Means for Small Business 401(k)s.
Article from U.S. Chamber of Commerce
The SECURE Act promises small business owners more incentives for offering retirement plans to employees, but there are still challenges ahead. Click here to read this article.