Retirement plans are described as “top-heavy” when business owners have more than 60% of the overall balance. And this meant many companies were faced with the following dilemma:

Do I set the waiting period for my plan to one-year and make my new employees unhappy, or should I make them eligible for the plan immediately? If I do that, I’ll have to bite the bullet and make company contributions even though my plan is top heavy.

Good news! Effective 2024, you’ll no longer have to debate this choice. You can allow new employees to enter into the plan immediately and delay the requirement for a company contribution until after one year of service. This keeps employees happy and you, the business owner, happy—a win/win.

Still playing by the old rules? Ask the professional retirement plan consultants at Concierge Retirement Services how SECURE 2.0 and other changes in the rules can bring you opportunity.