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Investment News Featured Joe DeBello to Discuss the Starter 401k Provision of SECURE Act 2.0

Only 28% of businesses with 10 or less employees offer an employer sponsored retirement plan, compared to 87% of businesses with 100 or more employees.

There are 92 new provisions in SECURE 2.0 all around reshaping how retirement is available to employees and how businesses offer employer sponsored plans. A real problem as illustrated by that statistic above is that many businesses do not offer retirement plan options as an employee benefit. Particularly the smaller an organization is the less likely they are to offer a 401k or other retirement benefits. In the InvestmentNews article, “Advisors, plan sponsors dig into the many, many provisions of SECURE 2.0,” they discusses many of the general provisions the impact employers retirement plan. OneDigital Retirement + Wealth Vice President Joe DeBello was featured in the article and addressed the Starter 401k provision included in SECURE 2.0.

Starter 401k

Included in Section 121 the Starter 401k provision will allow employers to offer a 401(k) or 403(b) safe harbor plan. Employers are not required to make a matching contributions and employees would automatically be enrolled at 3%. Employers would also receive a tax credit to help alleviate the administrative and monetary burden.

The Starter (k) provisions provide an easy-button option for employers to easily take advantage of newly enacted tax credits and avoid the hassle of complicated administration associated with legacy plan designs. The American Retirement Association estimates that the Starter (k) alone will provide retirement plan access for 19 million more Americans.
— Joe DeBello, Vice President, OneDigital Retirement + Wealth

To read the full InvestmentNews article, please click here.

Want to learn more about SECURE 2.0? Check out our SECURE Act 2.0 Hub.

Investment advice offered through OneDigital Investment Advisors LLC., an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.