It’s not that owners or employees don’t want a plan. In fact, 37% of small business owners with more than six employees say they are under pressure from employees to offer a retirement plan. Seventy-eight percent of these owners surveyed say having a retirement plan is effective in helping to attract qualified employees.“Our survey found that nearly half (46%) of small business owners were not aware or were unsure that an employee self-funded retirement plan could be offered without having to match employee contributions,” says Anne Arvia, senior vice president of retirement plans for Nationwide Financial. “The provisions in the Small Businesses Add Value for Employees Act before Congress will remove many of the barriers that have kept small businesses from offering their employees a retirement plan.”
Small business owners support concepts proposed in SAVE Act
The SAVE Act encourages small businesses to pool together to offer multiple small employer plans that are much less expensive than single employer plans and simplify an employer’s administrative requirements. It would allow small employers to reduce costs by pooling their resources under a single plan with easier administrative requirements.
There are numerous plan designs available to accommodate any size employer.
Please comment or call to discuss how this affects you and your business.
- Retirement-plan managers push for simplicity (401kplanadvisors.com)
- Brand New Product Offerings Allow Small Businesses to Easily Offer Effective Employee Retirement Plans, Including 401(k)s to Potentially Generate Wealth for Everyone (prweb.com)
- How 401(k) Profit Sharing Helps Small-Business Owners Maximize Their Savings (401kplanadvisors.com)