Small business owners can use an edge to help recruit and retain top talent in today’s competitive job market. A 401(k) plan can help do just that. It doesn’t hurt that if a business qualifies, it may be eligible for up to $16,5001 in potential retirement plan tax credits.
But how can a CPA, accountant, bookkeeper, or financial advisor support their small business clients with retirement planning options—plus, deepen client relationships and receive financial rewards?
How the SECURE Act 2.0 Might Benefit Your Clients.
A study shows that 94%2 of employees rank a 401(k) plan second only to health insurance when it comes to workplace benefits.
The benefits of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and the SECURE Act 2.0 can help small business owners provide a 401(k) plan to help their employees plan for the future. The most significant retirement savings reform in nearly 15 years, the SECURE Acts make it a great time for employers to offer a workplace retirement plan.
The SECURE Acts provide new opportunities for small businesses and are changing many aspects of the retirement industry.
SECURE Act tax credits and other benefits for eligible businesses and their workers may include:
- Potential tax credits of up to 100% of start-up costs for qualifying businesses to establish a retirement plan—up to $16,500.1
- A new Saver’s Match of up to 50% of the amount saved, capped at $1,000 for qualifying individuals, or $2,000 for qualifying couples.3
- Raising the required minimum distribution (RMD) age to 73 in 2023 and then to 75 in 2033, allowing workers the option to save longer in their 401(k) plan.
- Part-time workers have access to contribute to workplace retirement plans after meeting certain requirements.
- Mandating automatic enrollment for certain 401(k) plans, so employees must opt out of saving, rather than opt in.
- … and more.
State-Mandated Retirement Plans and Your Clients.
CPAs, accountants, bookkeepers, and financial advisors can help their small business clients consider the potential benefits of starting a retirement plan or re-evaluating their current plan. This conversation is especially critical with many states—with more on the way—mandating that some business owners provide employees with a retirement savings plan option or face potential penalties.
The end of the calendar year is a great time to help your clients start a 401(k) plan because they can make employer contributions that apply to the current tax year.
It’s Rewarding to Support Your Clients.
CPAs, accountants, bookkeepers, and financial advisors can deepen client relationships and potentially receive financial rewards by referring clients to Sure401k®.
SurePayroll® By Paychex 401(k) services offered through our affiliate, ePlan Services, Inc. (Sure401k), can help simplify how you support your clients. Sure401k features include:
- Safe harbor, solo or traditional 401(k) plans
- Bundled recordkeeping and third-party administrative (TPA) services.
- Multiple plan design choices and thousands of investment options
- Employee self-service options
- … and more
Our team can help simplify how you support your clients. Sure401k offers:
- Dedicated employer and employee support from our team
- Reduced administrative burden
- Mobile-first technology with plan sponsor and participant online access
- Plus, your clients may be eligible for SECURE Act 2.0 tax credits of up to $16,500.1
1 Eligible businesses may qualify for a federal tax credit of up to $5,000 annually for three years for administrative and certain other qualifying costs for establishing a workplace retirement plan. An additional annual $500 tax credit is available for three years for qualifying employers offering auto-enrollment.
2 Source: SurePayroll® By Paychex survey of employed Americans, 2023
3 Beginning in 2027, by making annual contributions of up to $2,000 to a 401(k) plan, current law provides that a qualifying individual can receive as much as $1,000 (and a couple can receive as much as $2,000) in Saver’s Match contributions from the U.S. Department of Treasury. The Saver’s Match is phased out above certain income levels.
