Maximizing Company Benefits with new Secure 2.0 Employer Tax Credits

Unlock New Opportunities with Secure 2.0 Credits

Attention business owners! The Secure 2.0 Act brings a host of valuable tax incentives designed to encourage the establishment and enhancement of qualified retirement plans. This landmark legislation offers robust financial benefits to support both small and mid-sized businesses in providing retirement security for their employees.

Key Benefits of Secure 2.0

1. Administrative Cost Credit

This credit is capped at $5,000 annually and is available for the first three years of the plan. For businesses that have hesitated due to the perceived complexity and cost of initiating retirement plans, this provision significantly lowers the barrier to entry.

2. Employer Contribution Credit

Beyond administrative costs, Secure 2.0 also incentivizes employer contributions to employee retirement accounts. Employers can claim a credit of up to $1,000 per employee for these contributions. 

Why Participate?

Implementing a retirement plan can enhance employee satisfaction and retention, positioning your business as a desirable place to work. Additionally, these tax credits and tax savings alleviate financial burdens, allowing you to invest in your workforce’s future with little to no upfront costs. Most business owners are finding their company-sponsored retirement plans will sustain themselves for 3+ years with the Secure 2.0 Credits available.

Mandate:

Right now Secure 2.0 is mandated in 13 states that requires employers to have a qualified plan in place. Louisiana is in proposed legislation along with many other states and will have a mandate very soon. Here you will find the states with a mandate and what that looks like: https://www.nestworth.us/resources

Conclusion

The Secure Act 2.0 presents a valuable opportunity for business owners to support their employees’ financial futures while also benefiting from significant tax incentives. By taking advantage of these new credits, you can create a more secure and attractive workplace for your current and future employees with little to no cost. 

For more detailed information on Secure 2.0 Credits, please visit https://www.nestworth.us/ or reach out to Melissa Lang at 985-373-6708 or email melissa.lang@nestworth.us