The SECURE 2.0 Act was signed into law on December 29, 2022, and contains a number of provisions impacting employer retirement plans. As a family business owner, it is important to stay on top of changes in the law that may impact your business or your retirement plans.
Below are three SECURE 2.0 retirement plan changes that family business owners should be aware of.
- Tax credits for start-up costs. Beginning in 2023, businesses with 50 or fewer employees are eligible for a tax credit on up to 100% of retirement plan start-up costs. Businesses with 100 or fewer employees may also be eligible for a credit on a percentage of employer contributions.
- Automatic enrollment. Beginning in 2025, 401(k) plans will be required to automatically enroll eligible employees. However, there are exceptions for businesses with 10 or fewer employees and businesses in existence for less than 3 years.
- Part-time employee participation. Beginning in 2025, employers will be required to allow part-time employees to contribute to the employer’s retirement plan if they have 500 or more hours of service for two consecutive years.
Read more about the SECURE 2.0 Act and tax strategies for high-income individuals.
How Does The SECURE 2.0 ACT Affect You?
Top Five Personal Tax Strategies For High-Income Individuals
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The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That’s why Policy and Taxation Group is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. Those issues include Step Up in Basis, gift tax, Valuation Discounts, Capital Gains Tax, Income Tax Rates, Wealth Tax, & Estate Tax (death tax).
Policy and Taxation Group is the leading information, education and advocacy organization working for the reduction and ultimate elimination of estate tax, gift tax, and generation skipping transfer taxes, and other taxes that punish hard work and success. Our Mission is to challenge hostile tax policies that meaningfully and measurably impact families and limit the ability of family businesses to remain family owned. We work with Congress in Washington DC against high Income Tax Rates, possible elimination of Valuation Discounts, increase in Capital Gains Tax, enactment of a Wealth Tax, and the continued burden of the Estate Tax (death tax), and the possible elimination of Step up in Basis.
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