Recording: California's Retirement Mandate and Secure Act 2.0

What Small Businesses Need to Know

David Roberto, the Partnership Manager of Human Interest, explains the evolving retirement landscape, including recent legislation and state mandates, is critical in today's economic environment. One in four Americans currently lacks retirement savings, and the Secure Act has been introduced to help small businesses assist their employees in preparing for retirement.

The Act offers tax credits to businesses setting up retirement plans such as 401Ks in 2023, an extra $500 per year for setting up auto-enrollment, and a $1,000 tax credit per employee earning under $100,000 for businesses offering a match.

These incentives are designed to help businesses offset the costs of setting up retirement plans and encourage them to prepare for mandatory auto-enrollment in 2025. This offers a clear incentive for business owners to consider a retirement benefit, which not only supports their employees' financial futures but also brings significant tax advantages to the business.

David Roberto shares personal insights regarding the benefits of implementing retirement plans in family businesses, emphasizing the Secure Act's role in boosting employee retention and morale. He emphasizes the act's importance for meeting state retirement mandates and offering tax shelter opportunities.

He goes on to explain how his company, Human Interest, aids in starting 401k plans, making it affordable and straightforward with tax credits and reimbursements. Human Interest even offers a tech credit and covers the cancellation fee when companies decide to transition their 401k plans.

Roberto then details their integration with payroll companies, facilitating a seamless transition for businesses. Their service integrates with almost every payroll company, offering a streamlined employee onboarding experience and automated 401k contribution processing.

Finally, he summarizes the Secure Act 2.0's implications for small businesses, including encouraging employee participation, doubling tax credits for new plans, and adding new credits for employer contributions. The aim is to ease the transition for businesses while offering them potential benefits.

Contact David Roberto