Previous | Five basic benefits of working with a financial planner Next | Mortgage tips for first time home buyers
February 22, 2022 / Chris Moore
How small-business owners can offer retirement plans

How small-business owners can offer retirement plans

As a small-business owner, you want to make a workplace retirement plan available to your employees. But you know you don’t have the time or technical background to handle 401(k) administration. So, what do you do?

You might want to consider a Multiple Employer Plan, or MEP, in which a third party takes on the plan administrator role and assumes much of the fiduciary liability. By pooling assets of unrelated employers, MEPs can provide lower administrative costs and added plan features that typically are available only to larger corporate plans.

At the federal level, the SECURE (Setting Every Community Up for Retirement Enhancement) Act was signed into law in late 2019. Employers no longer are required to have a common characteristic – such as all being part of an association or professional organization – to join a MEP.Growing savings

The SECURE Act also provides small-business owners with tax credits of as much as $5,000 for starting a retirement plan. These credits apply to businesses with 100 or fewer employees over a 3-year period beginning after December 31, 2019.

A recent survey conducted by Nationwide Retirement Institute showed that 84 percent of small-business owners responded that the SECURE Act would make it easier for them to offer a 401(k) plan. Nearly 80 percent felt it would allow them to offer a more competitive plan, leveling the playing field with larger corporations.

An effective retirement plan can be a powerful tool for retaining quality employees and recruiting new talent. Maybe now is the time to explore the benefits of starting one.


Chris Moore is a retirement plan sales relationship manager at F&M Trust. He can be reached by calling 717.262.7533.

Recent Articles
Mortgage tips for first time home buyers
Mortgage tips for first time home buyers

Mortgage tips for first time home buyers

January 25, 2023 / David Kuhns

Charitable Giving; A donor-advised fund offers tax benefits
Charitable Giving; A donor-advised fund offers tax benefits

Charitable Giving; A donor-advised fund offers tax benefits

January 20, 2023 / The Merrill Anderson Company

Why entrepreneurs find it hard to ask for help
Why entrepreneurs find it hard to ask for help

Why entrepreneurs find it hard to ask for help

January 16, 2023 / Patti Murray

Why the IRS is still catching up
Why the IRS is still catching up

Why the IRS is still catching up

January 06, 2023 / The Merrill Anderson Company

Lease vs Buy: Which is Better for My Business?
Lease vs Buy: Which is Better for My Business?

Lease vs Buy: Which is Better for My Business?

December 22, 2022 / Jeramy Culler

Stabilizing Your Business' Cash Flow
Stabilizing Your Business' Cash Flow

Stabilizing Your Business' Cash Flow

December 15, 2022 / Jeramy Culler

Social Security COLA Increase is Biggest Since 1981
Social Security COLA Increase is Biggest Since 1981

Social Security COLA Increase is Biggest Since 1981

December 08, 2022 / The Merrill Anderson Company

How to Protect Yourself After a Data Breach
How to Protect Yourself After a Data Breach

How to Protect Yourself After a Data Breach

December 01, 2022 / Ray Wills

Protecting Your Business Debit Card
Protecting Your Business Debit Card

Protecting Your Business Debit Card

November 24, 2022 / Ray Wills

Join our e-newsletter

Sign up for our e-newsletter to get new content each month.

NOTICE: YOU ARE LEAVING F&M TRUST!

You are now leaving the F&M Trust website. Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. F&M Trust neither endorses nor guarantees offerings of the third-party providers, nor is F&M Trust responsible for the security, content or availability of third-party sites, their partners or advertisers.