Advocacy News – Feb. 23, 2023
At the end of last year, the federal government passed the Consolidated Appropriations Act of 2023, which included significant and far-reaching retirement plan legislation known as the “Securing a Strong Retirement Act of 2022” or SECURE 2.0 for short. The driving force for the legislation was to encourage more Americans to save money for retirement. Nearly 1 in 5 ofAmericans indicate that they have not been able to save anything for life after work.
SECURE 2.o made over 90 changes that affect retirement savings plans, many of which impact employers. On Tuesday, March 14, the MI Chamber, in collaboration with Tri-Star Trust and Newport Retirement Services, are bringing you critical, must-know details to help you understand the changes and opportunities that your organization can harness to and help with talent recruitment and retention, and that employees can use to create better long-term financial wealth. Below are just a few of the changes that will be covered in the free webinar with Q&A opportunities:
- Start-Up Tax Credit – Employers can receive a tax credit to cover the implementation and administrative costs of offering a plan. Businesses with up to 50 employees can receive a 100% tax credit, up to $5,000 for each of the first 3 years. Businesses with 51-100 employees are eligible to receive a 50% tax credit, up to $5,000
- Employer Match Credit – An additional tax credit is available for all or a portion of eligible employer contributions. Businesses with up to 50 employees can receive a tax credit up to $1,000 per employee for the first and second tax years and then a reduced amount in the third to fifth tax years. Businesses with 51-100 employees are eligible for a similar, but reduced, tax credit for eligible employer contributions.
- Additional Incentives to Participate – Employers will now be able to offer additional incentives, on top of a contribution match. Additional incentives may include items such as gift cards or other modest financial contributions.
The changes outlined above are only a few, impactful modifications to retirement savings accounts and programs employers offer to their workers. Learn more about these changes and how they may be able to help you start a retirement plan for your company. Don’t miss our timely webinar. Register today!
For questions or more information, please contact Amy Mulholland at amulholland@michamber.com.