Unlocking Affordable Retirement Plans for Small Businesses

Eliminating Barriers to Retirement Savings for Small Businesses

ShareBuilder 401k is breaking down the barriers that often prevent small businesses and self-employed individuals from establishing retirement plans. Recently, the company announced the waiving of all setup costs for small and solo 401(k) plans. This initiative is aimed at helping companies with more than one employee, as well as sole proprietors, by providing significant savings that can amount to nearly $995 in setup costs.

Bridging Misconceptions in Retirement Planning

The misconception that small businesses cannot offer 401(k) plans is prevalent. Stuart Robertson, the CEO of ShareBuilder 401k, emphasizes the importance of changing this narrative. He notes that any business, regardless of size, is eligible to offer a 401(k) plan. By making retirement planning more accessible, ShareBuilder 401k aims to enhance financial security for both business owners and their employees.

A recent survey by ShareBuilder 401k revealed that 55% of small business owners believe their operations are too small to qualify for a retirement plan. Additionally, 28% of respondents feel they cannot afford to provide a company match. This highlights a critical need for education and resources that demonstrate how affordable retirement solutions can be.

Cost-Effective Solutions Tailored for Small Businesses

ShareBuilder 401k is committed to offering low-cost, high-quality retirement options specifically designed for small businesses. This initiative comes at a time when new tax incentives from the Secure Act 2.0 can make offering 401(k) plans nearly cost-neutral during the initial three years of implementation. With these incentives, even small businesses can provide quality retirement options at minimal financial risk.

Looking Ahead: Contribution Limits and Opportunities

As we move into the future, small business owners can look forward to increased 401(k) participant contribution limits. In 2025, these limits will rise to $23,500, with total allowable contributions climbing significantly for employer and employee contributions. Those who are self-employed will need to act quickly to establish their Solo 401(k) plans before their tax deadlines, allowing them to take advantage of these new benefits.

Moreover, sole proprietors have specific timelines for setting up their retirement plans that can help them efficiently manage their taxes while promoting long-term savings for retirement.

A Commitment to Customer Service and Accessibility

ShareBuilder 401k prides itself on its exceptional customer service and technology that simplifies the retirement planning process. By focusing on the unique needs of small businesses, they provide various plans that make setting up a 401(k) manageable and affordable. Their goal is not only to facilitate retirement savings but also to support business owners in understanding the best options available to them.

Exploring ShareBuilder 401k Offerings

The range of plans offered by ShareBuilder 401k ensures that businesses of all sizes can find a suitable retirement plan that aligns with their needs. The company's dedication to low costs and superior educational resources equips business owners with the tools they need to successfully navigate retirement planning, ultimately leading to a more secure and financially stable future for themselves and their employees.

Frequently Asked Questions

1. What are the benefits of waiving setup costs for 401(k) plans?

Waiving setup costs makes it easier and more affordable for small businesses and self-employed individuals to establish retirement savings, encouraging greater participation.

2. Can any business size qualify for a 401(k) plan?

Yes, all business sizes, including sole proprietorships, can qualify to offer 401(k) plans, so long as they have at least one employee.

3. What are the implications of the Secure Act 2.0?

The Secure Act 2.0 provides tax incentives for small businesses that implement 401(k) plans, thereby reducing costs and enhancing retirement savings opportunities.

4. How can I learn more about ShareBuilder 401k plans?

You can visit ShareBuilder 401k's website to explore their offerings and learn more about their retirement plan services.

5. What are the new contribution limits for 401(k) plans?

In 2025, the participant contribution limits will increase to $23,500, with expanded total contribution limits for eligible participants.

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