02/28/2024

The Secure 2.0 Act Offers Some Sweet Tax Benefits

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Kicking in at the start of this year, the Secure 2.0 Act is a law aimed at making it easier for companies to offer retirement benefits such as 401(k) plans, raise retirement plan contribution rates and generally encourage stronger financial saving practices. Perhaps the biggest incentive for small businesses is the startup tax credit, which covers up to $5,000 of a company's costs to establish and administer a 401(k) plan.

If you have 50 employees or less on staff, the credit will fully cover your startup costs. If you have between 50 to 100 workers, it'll cover half of the costs. 

"It's a real incentive to knock down a key hurdle for small businesses," said Adam Tremper, an offer management director at T. Rowe Price Group, a Baltimore-based investment management company that offers retirement plans. "We know that the expense of a plan is always something that keeps people away and anything we can do to knock that down is great."

Please select this link to read the complete article from Inc.