SIMPLE Plans Get a Boost: New Employer Contribution Flexibility Under SECURE 2.0
Small business owners looking for a straightforward, cost-effective retirement plan have long turned to SIMPLE IRAs and SIMPLE 401(k)s. Now, thanks to the SECURE 2.0 Act, these plans are more attractive than ever—especially with the introduction of a new employer contribution option.
What’s New? Additional Nonelective Contributions
Starting in 2024, employers sponsoring a SIMPLE plan can make additional nonelective contributions of up to 10% of an employee’s compensation or $5,000 per year (whichever is less). This is on top of the standard required contributions—either a dollar-for-dollar match up to 3% of compensation or a 2% nonelective contribution for all eligible employees.
This new flexibility allows small businesses to reward employees with larger retirement contributions, helping to attract and retain top talent in a competitive labor market. For business owners, these contributions are generally tax-deductible, providing a valuable incentive to invest in your team’s future.
Why Choose a SIMPLE Plan?
SIMPLE plans are designed for businesses with 100 or fewer employees and are known for their ease of administration. There’s no annual IRS filing requirement, and the plans avoid the complex nondiscrimination testing required of traditional 401(k) plans. With the SECURE 2.0 enhancements, SIMPLE plans now offer more generous employer contributions, making them a stronger competitor to 401(k) plans for many small businesses.
SIMPLE vs. 401(k): What’s the Difference?
While 401(k) plans offer higher overall contribution limits and more plan design options, they come with greater administrative complexity and cost. SIMPLE plans, by contrast, remain streamlined and affordable, now with the added benefit of higher employer contributions.
Take Action
If you’re considering a retirement plan for your business or want to review your current plan in light of these new rules, now is the perfect time. The SECURE 2.0 Act’s changes make it easier than ever to support your employees’ retirement goals while enjoying tax benefits and administrative simplicity.
Contact us to learn how these new SIMPLE plan features can work for your business.
Ready to transform your financial future?
Experience the peace of mind that comes with a solid financial plan.
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SIMPLE Plans Get a Boost: New Employer Contribution Flexibility Under SECURE 2.0
Small business owners looking for a straightforward, cost-effective retirement plan have long turned to SIMPLE IRAs and SIMPLE 401(k)s. Now, thanks to the SECURE 2.0 Act, these plans are more attractive than ever—especially with the introduction of a new employer contribution option.
What’s New? Additional Nonelective Contributions
Starting in 2024, employers sponsoring a SIMPLE plan can make additional nonelective contributions of up to 10% of an employee’s compensation or $5,000 per year (whichever is less). This is on top of the standard required contributions—either a dollar-for-dollar match up to 3% of compensation or a 2% nonelective contribution for all eligible employees.
This new flexibility allows small businesses to reward employees with larger retirement contributions, helping to attract and retain top talent in a competitive labor market. For business owners, these contributions are generally tax-deductible, providing a valuable incentive to invest in your team’s future.
Why Choose a SIMPLE Plan?
SIMPLE plans are designed for businesses with 100 or fewer employees and are known for their ease of administration. There’s no annual IRS filing requirement, and the plans avoid the complex nondiscrimination testing required of traditional 401(k) plans. With the SECURE 2.0 enhancements, SIMPLE plans now offer more generous employer contributions, making them a stronger competitor to 401(k) plans for many small businesses.
SIMPLE vs. 401(k): What’s the Difference?
While 401(k) plans offer higher overall contribution limits and more plan design options, they come with greater administrative complexity and cost. SIMPLE plans, by contrast, remain streamlined and affordable, now with the added benefit of higher employer contributions.
Take Action
If you’re considering a retirement plan for your business or want to review your current plan in light of these new rules, now is the perfect time. The SECURE 2.0 Act’s changes make it easier than ever to support your employees’ retirement goals while enjoying tax benefits and administrative simplicity.
Contact us to learn how these new SIMPLE plan features can work for your business.
Ready to transform your financial future?
Experience the peace of mind that comes with a solid financial plan.
Read more
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Whether you're in marketing, sales, or product design, you know the value of a quality landing page. These pages generate leads or sales with a single call to action (CTA) linked to specific campaigns.
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SIMPLE Plans Get a Boost: New Employer Contribution Flexibility Under SECURE 2.0
Small business owners looking for a straightforward, cost-effective retirement plan have long turned to SIMPLE IRAs and SIMPLE 401(k)s. Now, thanks to the SECURE 2.0 Act, these plans are more attractive than ever—especially with the introduction of a new employer contribution option.
What’s New? Additional Nonelective Contributions
Starting in 2024, employers sponsoring a SIMPLE plan can make additional nonelective contributions of up to 10% of an employee’s compensation or $5,000 per year (whichever is less). This is on top of the standard required contributions—either a dollar-for-dollar match up to 3% of compensation or a 2% nonelective contribution for all eligible employees.
This new flexibility allows small businesses to reward employees with larger retirement contributions, helping to attract and retain top talent in a competitive labor market. For business owners, these contributions are generally tax-deductible, providing a valuable incentive to invest in your team’s future.
Why Choose a SIMPLE Plan?
SIMPLE plans are designed for businesses with 100 or fewer employees and are known for their ease of administration. There’s no annual IRS filing requirement, and the plans avoid the complex nondiscrimination testing required of traditional 401(k) plans. With the SECURE 2.0 enhancements, SIMPLE plans now offer more generous employer contributions, making them a stronger competitor to 401(k) plans for many small businesses.
SIMPLE vs. 401(k): What’s the Difference?
While 401(k) plans offer higher overall contribution limits and more plan design options, they come with greater administrative complexity and cost. SIMPLE plans, by contrast, remain streamlined and affordable, now with the added benefit of higher employer contributions.
Take Action
If you’re considering a retirement plan for your business or want to review your current plan in light of these new rules, now is the perfect time. The SECURE 2.0 Act’s changes make it easier than ever to support your employees’ retirement goals while enjoying tax benefits and administrative simplicity.
Contact us to learn how these new SIMPLE plan features can work for your business.
Ready to transform your financial future?
Experience the peace of mind that comes with a solid financial plan.
Read more
Beyond "I Do": Essential Financial Discussions Before Getting Married
Whether you're in marketing, sales, or product design, you know the value of a quality landing page. These pages generate leads or sales with a single call to action (CTA) linked to specific campaigns.
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Whether you're in marketing, sales, or product design, you know the value of a quality landing page. These pages generate leads or sales with a single call to action (CTA) linked to specific campaigns.
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Whether you're in marketing, sales, or product design, you know the value of a quality landing page. These pages generate leads or sales with a single call to action (CTA) linked to specific campaigns.