Our last four blogs have focused on changes that affect individuals resulting from the new SECURE Act; however, the changes were not limited to individuals. There are a number of provisions focused on small business and designed to motivate small businesses to offer employer-sponsored retirement savings plans.
Among the provisions focused on small business is the increased ability for unrelated employers to band together to create a single retirement plan or Multiple Employer Plans (MEPs). The utilization of MEPs could potentially reduce costs associated with administering retirement plans thereby increasing the number of small businesses offering plans.
Another group of changes is around the option of offering lifetime income annuities as options within retirement plans. This change will allow a small business to offer an option to employees that helps to ensure that retirees do not run out of money. These changes also include enhanced Safe Harbor protection for employers to assess and select financially secure life insurers to provide the offered annuities and the requirement for benefit statements to disclose how much income a specific amount of retirement savings could be expected to generate.
The last group of changes provides increased tax credits to employers to create and maintain retirement plans and extends the current adoption deadline for a specific tax year to the due date for the employer’s tax return, including extensions.
We work with small business owners to create and maintain their company. If you wish to schedule a meeting to discuss your small business, call us at 678-781-9230.
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This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.