Read More

Empowering Small Businesses: How 401(k) Plans Can Boost Employee Retention and Financial Security

Only 24% of small businesses offered a 401(k) retirementplan for their employees, according to a
recent study from ShareBuilder, a retirement plan provider.

OneDigital's Christopher Zeoli, Vice President, Retirement Plan Advisory Services, speaks about his expertise and how he helps navigate the complexities of offering retirement plans to employees. Featured in an article by the Philadelphia Inquirer, Christopher Zeoli dives into common misconceptions as well as leveraging incentives that can help small businesses provide effective retirement plans.

Common Myths about the 401(k):

  • Many employers believe that the cost of setting up retirement plans are too high. Zeoli explains that thanks to 2022's SECURE 2.0 Act, small businesses can receive up to $15,000 in tax credits over a three-year period to offset these costs.
  • There are misconceptions about employers and employees having to initially contribute, but from 2025, automatic enrollment will be mandatory.
  • The myth that there is "too much paperwork"- Retirement plans often require annual tax returns and audits, which are typically handled by outside administrators. These experts also manage compliance testing, tax filing, and ensure rule adherence, simplifying the process for employers and plan sponsors. Zeoli explains how this makes it easier for the employee and employers.
  • Employers believe that their employees will not participate. Zeoli explains that there are many incentives that will make both parties more likely to contribute.

With lack of awareness, only 24% of small businesses offer a 401(k)-retirement plan for their employees due to perceived high costs and other factors. Educating business owners about retirement plans is crucial.

Chris highlighted the following for employers:

In end, it’s all about education, it’s important to make sure you and your employees understand the benefits of saving for retirement. These retirement plans benefit both parties.
Christopher Zeoli - Vice President, Retirement Plan Advisory Services, OneDigital Mid-Atlantic

 

Read the full Inquirer piece here.

OneDigital takes a comprehensive view of a company’s retirement plan and integrates it into a broader workforce strategy allowing employees to operate undistracted by financial stressors and at the highest level of their ability. Is your team ready to navigate the road ahead? Visit our Retirement Services solutions page to learn more.

Investment advice is offered through OneDigital Investment Advisors LLC.

Share

Top