The notion that 401(k) plans are too complex or expensive for small businesses is outdated. Running a business while managing employee benefits is challenging, but recent changes under SECURE 2.0 have made retirement plans more accessible, affordable, and beneficial for both employers and employees. It's time to rethink assumptions about 401(k)s in today’s market.

• Fewer than one in four small businesses currently offer a 401(k), but this number is growing.
• Businesses with up to 100 employees may qualify for up to $5,000 per year in tax credits for plan startup costs for the first three years.
• Employees must have earned at least $5,000 in the prior year to qualify.
• An additional credit of up to $1,000 per employee is available for employer contributions.
• Auto-enrollment is now standard in most new 401(k) plans, boosting participation rates.
• A well-designed plan can attract and retain top talent while lowering taxable income, with both plan expenses and employer contributions being tax-deductible.

There are now more flexible and affordable options than ever, making this an ideal time to consider offering a retirement plan. Offering a 401(k) is no longer a heavy administrative or financial burden for small businesses. Explore your options now to stay competitive in attracting talent. Speak with a financial or benefits advisor to create a plan tailored to your needs.