clearn.png
Wednesday February 26th, 2020 4:15AM

New law may encourage businesses to offer retirement plans

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — A new law expanding retirement plan options for small businesses may encourage more companies to offer the benefits to their workers.

The Setting Every Community Up for Retirement Enhancement Act, known as the SECURE Act, won final congressional approval in the Senate last month and was signed into law by President Donald Trump.

One of the bill's features makes it easier for small businesses to band together to offer 401(k) and other retirement plans. What are called Multiple Employer Plans lower the costs of administering a plan.

The high costs of more complex plans like 401(k)s have put them out of reach for many small businesses. These costs also reduce the returns employees get from their investments. So joining a plan with other companies theoretically will make it easier for small businesses to offer retirement plans.

The law also increases the maximum tax credit small businesses get for starting plans, to $5,000 from $500.

Half the workers in companies with fewer than 50 employees have access to retirement benefits, according to a Labor Department report.

“Most small businesses simply don’t have the funds or staff to offer and manage retirement plans,” said John Arensmeyer, CEO of the advocacy group Small Business Majority.

What's not known at this point is whether multiple plans going forward will have costs low enough to persuade small-business owners to join. Owners do have other options, including Simplified Employment Pension, or SEP, plans that are less complex and cheaper than 401(k) plans.

Multiple employer plans are already offered by financial institutions and benefits companies. Small business owners can learn more about their retirement plan options in IRS Publication 560, Retirement Plans for Small Business. You can access it here: https://www.irs.gov/forms-pubs/about-publication-560.

——-

Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg . Her work can be found here: https://apnews.com

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Corporate News, AP Business - Personal Finance, AP Business - Financial Planning, AP Business - Small Business
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Harvey Weinstein indicted on new sex crimes charges in LA
Prosecutors say Harvey Weinstein has been indicted on new sex crime charges in Los Angeles
2:16PM ( 18 minutes ago )
Undefeated Auburn, San Diego St rise in Top 25; Butler No. 6
Gonzaga, Duke and Kansas remain atop The Associated Press men's college basketball poll
2:02PM ( 32 minutes ago )
Gold climbs, stocks mixed as markets swing toward safety
US stocks are paring their losses in afternoon trading, and indexes are mixed after the S&P 500 pushed to a small gain
2:02PM ( 32 minutes ago )
Associated Press (AP)
AP Explains: Venezuela crisis deepens with congress takeover
Allies of Venezuelan President Nicolás Maduro attempted to orchestrate a takeover of the opposition-controlled congress Sunday as opposition leader Juan Guaidó was blocked by security forces from presiding over the start of the legislative year
12:44PM ( 1 hour ago )
Bolton willing to testify in impeachment trial if subpoenaed
Former Trump national security adviser John Bolton says he is “prepared to testify” if he is subpoenaed by the Senate in its impeachment trial
12:26PM ( 2 hours ago )
Bolton 'prepared to testify' if subpoenaed in Senate trial
Former Trump national security adviser John Bolton says he is “prepared to testify” if he is subpoenaed by the Senate in its impeachment trial
12:07PM ( 2 hours ago )
AP Online Headlines - Washington
Georgia's new GOP senator enters politics amid impeachment
A Republican businesswoman set to be sworn in as Georgia’s next U.S. senator will enter the chamber with a unique distinction: Her first vote could be on whether to remove the president
1:14AM ( 13 hours ago )
AP FACT CHECK: Pence misleadingly links Iran general to 9/11
As he heralded a new year, President Donald Trump closed out the old one with numerous boasts about what he had accomplished
12:18AM ( 14 hours ago )
Trump returns to Washington to face a pair of challenges
President Donald Trump is facing twin challenges now that he has returned to the White House
12:10AM ( 14 hours ago )
AP Online Congress News
As tension in Middle East is rises, so too does price of oil
The global benchmark for crude oil has risen above $70 a barrel for the first time in over three months
1:51PM ( 43 minutes ago )
Harvey Weinstein appears in court ahead of sex assault trial
Harvey Weinstein and several women who have accused him of sexual misconduct converged at a New York City courthouse ahead of his trial on charges of rape and sexual assault. The 67-year-old movie mogul, his lawyers and a judge were handling the final preparations Monday before jury selection starts this week
1:17PM ( 1 hour ago )
Lyft's good-guy image tainted by sexual assault lawsuits
For years, Lyft has been the good guy of ride-hailing
1:02PM ( 1 hour ago )
AP Business
Iranian leader's tears a sign of respect for slain general
Iran's supreme leader has wept openly at the funeral of his top general who was killed in a U.S. drone strike
12:11PM ( 2 hours ago )
Stocks slip amid worries over escalating U.S.-Iran conflict
Stocks fell in early trading on Wall Street Monday and oil prices continued rising as investors worried that tensions between the U.S. and Iran would escalate
10:28AM ( 4 hours ago )
An emotional Khamenei shows Iran general's death is personal
Iran's supreme leader has cried openly at the funeral of his top general, killed in a recent U.S. drone strike
8:58AM ( 5 hours ago )
AP Business - Corporate News
Investors could be partying like it's 1997, but many sat out
This past year was one of the best in decades for fund investors, as investments of all kinds made money
1:00PM ( 4 days ago )
Financial tug-of-war emerges over fire victims' settlement
A financial tug-of-war is emerging over the $13.5 billion that the nation's largest utility has agreed to pay to victims of recent California wildfires, as government agencies jockey for more than half the money to cover the costs of their response to the catastrophes
1:58AM ( 5 days ago )
AP Business - Personal Finance
AP Business - Financial Planning
2020 brings higher labor costs for small businesses
Small businesses have plenty of changes to deal with as 2020 begins
12:28PM ( 4 days ago )
AP Business - Small Business
Harvey Weinstein indicted on new sex crimes charges in LA
Prosecutors say Harvey Weinstein has been indicted on new sex crime charges in Los Angeles
2:16PM ( 18 minutes ago )
Undefeated Auburn, San Diego St rise in Top 25; Butler No. 6
Gonzaga, Duke and Kansas remain atop The Associated Press men's college basketball poll
2:02PM ( 32 minutes ago )
Gold climbs, stocks mixed as markets swing toward safety
US stocks are paring their losses in afternoon trading, and indexes are mixed after the S&P 500 pushed to a small gain
2:02PM ( 32 minutes ago )
Throngs mourn, Iranian leader weeps for general slain by US
Iran's supreme leader shed tears while praying over the casket of a top general killed in a U.S. airstrike in Baghdad
2:02PM ( 32 minutes ago )
Harvey Weinstein indicted on new sex crimes charges in LA
Prosecutors say Harvey Weinstein has been indicted on new sex crime charges in Los Angles, just as his trial on separate rape and sexual assault charges in New York was poised to get underway
1:53PM ( 41 minutes ago )