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Knaub & Company, PC

Certified Public Accountants

78 Meadow Village Drive, Suite E

PO Box 161030, Big Sky, MT 59716

 

Phone:  406-995-6040

Fax:      406-993-2772

  

Email: knaubco@3rivers.net

April 2020

SECURE for Business

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The SECURE Act also creates big changes for companies offering qualified retirement plans. Here are a few of them:


Easier Access
More small businesses are eligible to start a qualified retirement plan for employees, as the new law allows two or more unrelated employers to join a pooled employer plan. More parttime workers are eligible to make elective deferrals, depending on their length of tenure, and plan sponsors have a new safe harbor when offering annuities.


New Credits
Employers will also see higher tax credits for plan startup costs and up to a $500 credit for startup plans that include automatic enrollment in 401(k) plans and SIMPLE IRAs. The safe harbor for the automatic enrollment escalation cap rises from 10% to 15% of pay, while certain penalties for failing to file plan returns increase.


Talk to your tax and plan professionals to learn more.


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