Congress Adds Retirement Options for Small Business Owners
Dec. 27, 2019—The Setting Every Community Up for Retirement Enhancement (SECURE) Act's provisions included in Congress' appropriations package were approved with the passage of a continuing resolution to fund the federal government.
The passage of the SECURE Act also advances a provision that provides small business owners a financial incentive to offer their employees a plan. The legislation provides an annual tax credit that covers up to $5,000 of plan costs for the first three years that an employer offers a workplace retirement plan.
According to a Nationwide recent business owner survey, 80 percent of small business owners believe the SECURE Act will allow them to offer a 401(k) plan that rivals those offered at large corporations.
Among those who are familiar with the SECURE Act, 84 percent believe the legislation should make it easier for small business owners to offer a 401(k). In addition, nearly nine in 10 agree that the legislation provides both their business and employees tax advantages (88 percent), helps attract and recruit top talent (88 percent) and helps improve employee retention (86 percent).