secure 2.0 - new law may allow new plans to start up for 'free' - this is a big deal
On December 29, 2022, President Biden signed the SECURE 2.0 Act which has many changes and options for retirement plans. Among them is the following:
New plans for employers with under 50 employees who have not had an existing plan in the prior 3 taxable years, including SIMPLE or SEP, may get a 100% tax credit for eligible start up costs.
Such new plans may even get up to 100% of a tax credit for employer contributions (match or profit sharing) for the 1st two years, with partial credit for the next 3 years.
As always, there are many details about this, so please contact me for additional information and to make sure your potential new plan will qualify.
Jeff Esmond is an aspiring blogger.