Many small business owners still hold the outdated belief that 401(k) plans are too complex or expensive. However, it's essential to reconsider these assumptions, especially with the recent changes brought by SECURE 2.0, which have made retirement plans more accessible, affordable, and beneficial for both employers and employees.

Running a small business is challenging enough without the added worry of managing employee benefits. But as fewer than one in four small businesses currently offer a 401(k), the numbers are on the rise. Here's what you need to know:

• 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.
• There's an additional credit of up to $1,000 per employee for employer contributions.
• Auto-enrollment has become standard for most new 401(k) plans, significantly boosting participation rates.
• A well-designed plan can help attract and retain top talent while lowering taxable income, with both plan expenses and employer contributions being tax-deductible.

With more flexible and affordable options than ever, now is the ideal time for small businesses to consider offering a retirement plan. Offering a 401(k) is no longer a heavy administrative or financial burden. To stay competitive in attracting talent, it's crucial to explore your options today.

We encourage you to speak with a financial or benefits advisor to create a retirement plan tailored to your needs.