SECURE (Setting Every Community Up for Retirement Enhancement) Act, Part 4 Companies
The SECURE Act was created to help individuals with retirement. This Act affects people differently depending on their stage in life. This will be the last stage and post in our series.
- Annuities are allowed as investment options within 401(k) plans.
- A new tax credit is available to small employers to offset the costs of starting a 401(k) or SIMPLE IRA plan.
- $250/non-highly compensated employee.
- Minimum credit of $500. Maximum credit of $5,000.
- The credit applies for up to three years.
- If the plan utilizes automatic enrollment, there is an additional credit of $500.
- Auto enrollment safe harbor cap was increased from 10% maximum contribution to 15%.
If you have any questions on how the SECURE Act affects you specifically, please give us a call!