What Do You Know About Retirement Saving Options for Small Businesses?
Because of the concern surrounding the retirement crisis in America, federal and state governments have been taking steps to encourage higher levels of workplace retirement plan sponsorship and participation.
Currently, about one-third of private sector workers do not have access to workplace plans, and many small business owners do not know their options or even consider them because there is a perception that the cost would be too high and administration requirements too difficult.
In a recent Executive Order, President Trump pushed for increased access to workplace retirement plans—including multiple employer plans (MEPs)—which could help small businesses. MEPs can limit fiduciary responsibility, simplify plan administration, and reduce expenses for employers, but they do not resolve some of the root issues that have made small business owners reluctant to adopt MEPs in the first place.
Small business owners should educate themselves on other available options, including SIMPLE IRAs and workplace IRAs, which can not only help their employees, but also add a competitive edge for recruitment and retention.
To learn more about retirement plan options for small businesses, read "Hey! MEPs Aren’t the Only Retirement Solution for Small Businesses" in 401(k) Specialist.
The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.