Shannon was referred to me by a client.
“I’m starting up a new business venture and Kim told me you could help set up the retirement plan.”
“Hi Shannon,” I said. “You’re going to like the good news I have for you. Thanks to a new set of changes in the rules called ‘SECURE 2.0,’ you can take advantage of some tax credits that are very friendly to startups.”
“I like you already!” said Shannon with a laugh. “How does that work?”
“As long as you have fewer than 50 employees, the tax-credit for qualified startup costs has gone up from 50% to 100% up to a $5000 limit. That means as long as you spend less than $5K getting your plan set up, Uncle Sam will pay 100% of those costs for your first three years.”
“Free is hard to beat!” said Shannon.
“And there’s more,” I explained. “The government is also subsidizing employee contributions. As long as an employee earns under $100K per year, the gov will reimburse them up to $1000 per year during the first two years. Then it goes down to 75%, 50%, and 25% in years three, four, and five. And this works for all defined contribution/defined benefit plans.”
“I see why Kim recommended you,” said Shannon. “So if I understand you correctly, I can have you set up and manage my plan and the government will cover those costs?”
“Pretty much!”
Don’t leave good money on the table. Ask the professionals at Concierge Retirement Services to help you find the best plan for you.