Challenging the idea that 401(k) plans are too complex or expensive for small businesses begins with understanding recent positive changes. While running a business and managing benefits is no small feat, it's important to rethink outdated notions about retirement plans.

Recent updates under SECURE 2.0 have made retirement plans more accessible and affordable for both employers and employees. Here’s what you should know:

• Fewer than one in four small businesses currently offer a 401(k), but this number is growing.
• 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 for participation.
• An additional credit of up to $1,000 per employee is available for employer contributions.
• Auto-enrollment is now standard for most new 401(k) plans, 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.

Nowadays, with more flexible and affordable options, it’s an ideal time to consider offering a retirement plan. Offering a 401(k) is no longer a heavy administrative or financial burden for small businesses.

Explore your options now to stay competitive in attracting talent. Speak with a financial or benefits advisor to create a plan tailored to your needs.