The new Setting Every Community Up for Retirement Enhancement (SECURE) Act might make it easier for small business owners to offer retirement plans. For many people, their work is the main place to find retirement savings tools and access retirement plans. The SECURE Act has been one of the largest overhauls of the United States retirement system in many years. The new legislation gives business owners a financial incentive to offer employees a plan. SECURE Act can offer employers open MEPS.
SECURE Act can offer employers open MEPS
A Multiple Employer Plan (MEP) is one that is maintained by two or more employers, that are not related. This means multiple small businesses can participate in a single retirement plan, sponsored by a third party or the MEP sponsor. A plan like this is beneficial for small companies who might not have the resources to handle a retirement plan independently. When multiple companies come together, they can share the burden.
SECURE Act provides tax credit
In addition to MEPs, the new SECURE Act provides an annual tax credit, to cover up to $5,000 of plan costs for the first three years it is open. This means the tax credit is has raised to a total of $15,000 for those three years.
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