According to U.S. Bureau of Labor Statistics, about half of small business employees do not have access to the same quality work-based retirement plans as workers at large employers.
That has now changed with the Setting Every Community Up for Retirement Enhancement (SECURE) Act. This bipartisan measure benefits every working American saving for retirement while also providing small business owners and their employees with new tools to level the retirement-planning playing field and close the retirement gap for the half of our nation’s workforce engaged in and employed by small businesses.
With record-low unemployment increasing competition for small businesses recruiting and retaining talent, the SECURE Act makes a career in small business more attractive by opening access to a wide range of retirement programs to those working in the small business sector.
The centerpiece of the SECURE Act — Open Multiple Employer Plans — allows small businesses to pool their resources to offer a retirement plan to workers that is cost effective and simpler to administer, while making it easier for small firms to provide economic security in retirement to their workers, and better position small businesses to recruit and retain a skilled workforce.
Moreover, small businesses are now eligible for a tax credit for creating a retirement plan for employees’ participation. Anyone working at least 1,000 hours in a year (about 20 hours per week), or three consecutive years of at least 500 hours, will be able to participate under the law.
SOURCE: wvnews.com, 1/26/2020