The belief that 401(k) plans are too complex or costly for small businesses is outdated. Managing employee benefits while running a business is challenging, but changes under SECURE 2.0 have made retirement plans accessible and beneficial for business owners in Palm City and Bethesda.

Rethink 401(k)s

Only about one in four small businesses, including those in areas like Palm City and Bethesda, offer a 401(k), but this number is rising. Businesses with up to 100 employees can qualify for up to $5,000 annually in tax credits for plan startup costs over the first three years. Plus, there’s an additional credit of up to $1,000 per employee for contributions.

Boost Participation with Auto-Enrollment

Auto-enrollment is now standard in most new 401(k) plans, significantly increasing participation rates. A well-designed plan can attract and retain top talent from the Treasure Coast to Montgomery County and can lower taxable income, with plan expenses and employer contributions being tax-deductible.

Flexible and Affordable Options

With more flexible and affordable options available, it's an excellent time for businesses to consider offering a retirement plan. Offering a 401(k) is no longer a burden, financially or administratively. Explore your options now to stay competitive in attracting talent, whether you're in Palm City or Bethesda.

If you're considering offering a 401(k), speak with a fiduciary financial advisor in Palm City or Bethesda to create a plan tailored to your needs. King Tide Advisors is here to support you with expert advice and personalized financial planning.