Intro:
If you’ve been thinking about setting up a retirement plan for your employees, there’s never been a better time. The SECURE Act 2.0—signed into law to strengthen retirement readiness—makes it easier and more affordable than ever for small businesses to offer plans like a 401(k) or SIMPLE IRA. Thanks to enhanced tax incentives, your business could claim up to $15,000 in tax credits over the next three years just for getting started.

This is a huge win for small business owners looking to build a stronger team, support their employees’ futures, and lower their tax burden in the process.

💰 What’s New Under SECURE Act 2.0?

The most notable update is the Startup Plan Credit, which now covers 100% of eligible startup costs, up to $5,000 per year, for three years. That’s a potential $15,000 in tax credits for setting up your first retirement plan.

Here’s how it works:

• Eligibility: Businesses with up to 50 employees are eligible for the full 100% credit. Larger businesses may qualify for partial credits.
• Covered Costs: These credits apply to expenses such as plan setup and administration fees.
• Additional Credits: You may also be eligible for a separate credit if your business makes employer contributions to employee accounts—up to $1,000 per employee over five years.

The goal is simple: encourage more small employers to provide meaningful retirement benefits without breaking the bank.

🧲 Why This Matters for Your Business

Aside from the significant tax savings, offering a retirement plan brings real business advantages:

• Attract Better Talent: Top-tier employees increasingly look for jobs that offer competitive benefits. A retirement plan gives your company an edge when hiring.
• Retain Your Team: Employees are more likely to stay with businesses that invest in their long-term well-being.
• Build Company Culture: Offering a retirement plan shows your commitment to employee success, boosting morale and loyalty.
• Plan for Your Own Future: If you’re a business owner, you benefit too—contributing to your own retirement while enjoying the tax breaks that come with it.

✅ Action Steps: Make the Most of These Tax Breaks

If your business doesn’t currently offer a retirement plan, now’s the time to act. Setting one up today could mean thousands of dollars in tax credits—not to mention the long-term benefits of a happier, more secure workforce.

Here’s what you can do:

1. Assess Your Options: Consider whether a 401(k), SIMPLE IRA, or another plan type is right for your business.
2. Talk to a Pro: A CPA or financial advisor can walk you through the specifics, help with setup, and ensure you maximize available credits.
3. Don’t Wait: These tax incentives are time-sensitive. The sooner you start, the sooner you benefit.

Final Thoughts:
The SECURE Act 2.0 is a game-changer for small business retirement planning. With generous tax credits on the table, there’s never been a more financially rewarding time to offer your team a retirement plan.

If you’d like help getting started—or just want to explore your options—reach out today. We’re here to help you make smart moves for your business and your people.

Sincerely,
W. E. Stevens, PC

Serving you through a thoughtful client experience, wise long-term perspective, and very experienced staff