Starting a Plan for FREE

A business owner can start a retirement plan for free.

It's frustrating doing the work to start a plan; then cost prevents implementation.

Along comes Secure 2.0 to provide us the relief.

There are 3 credits available to your business owner to leverage.

• Automatic Enrollment Credit (<100 employees)

$500 tax credit per year for the first 3 years.

Auto Enroll your employees starting at 3% minimum. It's going to be required in 2025 anyway. Remember you'll have to Auto Escalate them 1% each year as well.

• Start-up Credit (<100 employees)

$250 multiplied by # of eligible non-highly compensated employees (NHCE) up to $5,000 for the first 3 years.

Credit covers 100% (<50 employees) or 50% (51-100 employees) of plan costs the company pays for out of pocket. The minimum credit is $500 if you have only one NHCE. To qualify, it must be the company's first retirement plan.

• Employer Contribution Credit (<100 employees)

Dollar for dollar credit up to $1,000 annually per employee for employer contributions to an employee earning <$100,000 phased out over 5 years.

Credit is reduced by 2% for each employee >50 employees. Credit issued at 100% for years 1 and 2, 75% for year 3, 50% for year 4 and 25% for year 5. Great opportunity for safe harbor plans to achieve this credit.

Cost is no longer an excuse for a business owner.

Talk about the credits as an effective way to mitigate costs.

Your client may pay $0 for a plan for at least 3 years and up to 5!

Happy to help walk you and a new plan through the credits.