How Small Businesses Can Claim More Tax Incentives

The SECURE 2.0 Act is legislation geared to help relieve the cost of 401(k) plans for small businesses. One of the clearest ways it does this is through tax incentives. When partnering with Saveday, these savings are compounded. But what exactly are these tax incentives, and how can they benefit small businesses?

1. Startup Credits Enhanced:

Small businesses currently have the option to claim a tax credit for 50% of the startup costs involved in creating and administering a plan, with an annual maximum credit of $500. However, with the implementation of the SECURE 2.0 Act, this credit is increased. Now, businesses can claim a credit equal to either (a) $500 or (b) the lesser of $250 multiplied by the number of non-highly compensated employees eligible to participate in the plan, or $5,000. This change means that businesses can potentially access a maximum credit of $5,000 for a period of three years, which significantly offsets their initial costs.

2. Credit for Automatic Enrollment:

In addition to the startup credits, the SECURE 2.0 Act introduces a new credit for small businesses that add automatic enrollment to their new or existing retirement plans. This credit is worth $500 and can be claimed for three years.

3. Extended Period for Plan Adoption:

Businesses now have an extended period to adopt new retirement plans. So that means, rather than having to establish a plan by the end of the business year, businesses can set up a plan as late as their tax filing deadline, including extensions. This flexibility can assist in better financial planning for the tax credits.

Overall, the introduction of enhanced tax incentives for small businesses in SECURE 2.0 is a clear nod towards promoting retirement savings and making it more affordable for businesses to provide such plans. By partnering with a platform like saveday, which already minimizes costs, small businesses can leverage these incentives to the fullest, offering robust retirement benefits without a heavy financial burden.

Ready to learn more about how a 401(k) can transform your small business? Read more here. 

New Job? Here’s What You Can Do With Your Old 401(k)

Welcome back, savvy savers!

It’s Emma, again (who’s still trying this whole saving thing)! Today we’re navigating a topic many of us will face at some point in our careers: when switching jobs, what do I do about my 401(k)? It’s an exciting (but definitely nerve-wracking) phase. Between the inevitable LinkedIn update and making the oh-so important decision that is your first-day outfit, it’s nice to know at least one major decision is in good hands. Saveday helped guide me through my options, so I’m here to pay it forward! 

A Glimpse at Your 401(k) Choices

1. Let It Be:

What it entails: Letting your cash stay put in your prior employer’s 401(k) setup. It’s the path of least resistance for many.

Upsides: The comfort of known investment avenues.

Downsides: Risk of a fragmented retirement plan over time, the potential lure of better options elsewhere, and the need to juggle plan particulars. The provider may have time limits on holding accounts for inactive employees, meaning the money could be returned to you in the form of a check if you don’t take action on it before the deadline. Then you’ll need to move the money into a new retirement account or face the possibility of penalty taxes.

2. Roll It Over:

What it entails: Funneling your former 401(k) assets into your new employer’s plan.

Upsides: Streamlined retirement funds, possibly superior investments or fewer fees.

Downsides: Potential rollover restrictions or hoops and the hustle of paperwork.

3. Cash Out:

What it entails: Withdrawing your 401(k) dollars, right here, right now.

Upsides: Immediate funds for emergencies or pivotal expenditures.

Downsides: Penalties for those below 59 ½, taxable withdrawals, and truncating your retirement growth.

4. Shift to an IRA:

What it entails: Redirecting your old 401(k) into an Individual Retirement Account.

Upsides: Augmented investment horizons, coalesced accounts, and tax-free direct rollovers.

Downsides: Greater autonomy may need more of your time, and watch out for provider fees.

Your Savvy Saver Checklist

Fees: Every 401(k) comes with a price tag. Always evaluate your option’s economic viability. Here’s where saveday’s candidness on pricing stands out.

Investment avenues: Ensure your pick resonates with your investment philosophy and risk appetite. Dive into saveday’s swift quiz to decode yours.

Taxes: Everyone’s (least) favorite subject! The timing of your 401(k) moves can influence your tax savings. Saveday has great guides for optimizing this.

In essence, those are your moves. Remember, every twist and turn on the savings route is a learning curve. With the right insights and tools, you’re not just saving; you’re building the future you deserve. 

The Saveday Edge

Job transitions are a whirlwind, even without the added 401(k) puzzle. That’s where saveday came in handy for me. Their user-centric dashboard coupled with a goldmine of informative assets demystifies the decision labyrinth. Rolling over? Consolidating? Or keen to up your knowledge quotient? Saveday’s got your six. Check out their blog to learn more.

Best of luck,

-Emma

Tackling the Hidden Villains: Understanding 401(k) Fees

Welcome back, savvy savers!

Emma here, your young adult saving guide to all things 401(k). Today we’re taking on the sneaky realm of 401(k) fees. That’s right. It’s not just those unexpected concert ticket fees that can surprise you anymore.

We all dream of stashing away more money for a fun-filled, carefree retirement. And 401(k)s? They’re the chariots that drive us to that dream. But lurking in the shadows, there are villains known as fees, threatening to derail your journey. These seemingly small fees can, over time, devour a surprising slice of your precious savings.

Unmasking the Fee Percentages

At a glance, 401(k) fees might appear trivial. A tiny 1% here, a little 0.5% there. But let’s crunch some numbers: with a balance of $100,000 in your 401(k), a 1% annual fee snatches away $1,000 each year. Stretch that over years, and coupled with compound interest, you’re losing out on a significant sum.

Saveday to the Rescue

This is where saveday swoops in like a superhero. With its crystal-clear dashboard and transparent fee structures, understanding and minimizing your fees is a breeze. Our primary mission? Ensuring you get optimum value for every penny you invest.

Simple Steps to Save on Fees

  1. Review Regularly: A quick monthly glance at your statement can save you loads in the long run.
  2. Switch to Low-Fee Funds: Check out the range of low-fee fund options available with saveday to maximize your savings.

So, as we close the chapter on our 401(k) fee adventure, here’s the moral of the story: arm yourself with knowledge. By understanding these fees, you’re in the driver’s seat, ensuring more money remains where it should – with you!

Want more finance hacks? Dive deep into saveday’s treasure chest of resources. And always remember, every penny saved today is a step closer to your dreamy, beachside retirement. 

Keep saving!

-Emma

P.S. Gear up for my next post where we dive into the world of tax savings with retirement contributions. Trust me, you won’t want to miss this!

Navigating Retirement Planning as a Small Business Owner

You juggle numerous responsibilities as a small business owner, from managing operations to nurturing growth. Amidst it all, it’s crucial not to overlook employee benefits. That’s why we specialize in 401(k)s for small businesses. This blog post will guide you through the key retirement planning considerations as a small business owner and introduce you to saveday, a trusted partner in offering 401(k) solutions. Prepare to sail on a smooth and secure journey to your small business’s success.  

Understanding the Unique Challenges of a Small Business:

Retirement planning as a small business owner comes with its own set of challenges. You may not have the luxury of a large HR department or access to the same resources as larger corporations. However, by recognizing these challenges, you can proactively navigate the path to retirement success. 

  1. Establishing a Retirement Savings Plan: 

One of the first considerations is selecting the right retirement savings plan for your small business. Saveday offers an array of solutions designed specifically for small businesses. These options provide flexibility and tax advantages, allowing you to save money while maximizing benefits for yourself and your employees. 

  1. Meeting Regulatory Requirements: 

Navigating the complex landscape of retirement plan regulations can be overwhelming. Saveday simplifies this process by providing expert guidance and ensuring your plan remains compliant with the latest regulations. With saveday, you can rest easy knowing that your retirement plan is in good hands, allowing you to focus on what you do best – growing your business. 

  1. Balancing Cost and Value: 

As a small business owner, every dollar counts. Saveday understands the importance of cost-effectiveness without compromising on quality. We offer some of the lowest and most transparent pricing in the industry, ensuring that your retirement plan remains affordable while delivering exceptional value and benefits to you and your employees.

  1. Engaging and Educating Employees: 

Engaging and educating your employees about the importance of retirement planning is vital. Saveday provides comprehensive educational resources, empowering your employees to make informed decisions about their financial futures. By fostering a culture of retirement readiness, you can strengthen employee loyalty and attract top talent to your small business.  

Solutions for Small Businesses:

Saveday is your partner in navigating the complexities of retirement planning as a small business owner. Our tailored solutions address your unique needs and provide the following benefits: 

1. No-hassle Plan Set-up and Administration:

Easy payroll integration and simple plan offerings make set-up and roll-out a breeze. No administrative headaches or multi-vendor back-and-forth. You’re just fifteen minutes away from offering a simple, affordable 401(k) plan!

2. Opt-out Participant Models:

    Auto-enrollment drastically increases employee engagement rates, ensuring employees get the most out of their retirement benefits. Saveday has various employee engagement tools, including educational resources, retirement calculators, and personalized dashboards. Empower your employees to take control of their financial futures, fostering a sense of ownership and financial well-being. 

    As a small business owner, retirement planning should be a top priority. You can embark on a successful retirement journey by understanding the unique challenges and leveraging the tailored solutions Saveday offers. 

    Saveday is your trusted partner in navigating 401(k)s for small businesses. 

    Secure your business’s future today and enjoy the rewards of a well-prepared retirement. Claim your financial freedom and set up your business’s 401(k) now.

    401(k) HR Administration Made Easy: Partnering with Saveday for Small Business Owners

    Implementing a 401(k) plan as a small business owner can be quite an administrative headache. Many small business owners don’t have the time or HR manpower to take on this project and manage their business simultaneously. You don’t have to face this burden alone. Partnering with Saveday streamlines and simplifies your HR administrative responsibilities. 

    1. Simplified Plan Administration:

    Saveday’s user-friendly platform simplifies plan administration. From employee onboarding to managing contributions and generating reports, Saveday offers intuitive tools that make the process seamless. With automated data collection and reporting features, you can save time and effort while ensuring accuracy.

    2. Personalized Support

    Saveday provides dedicated support to guide you through every step of the process. Whether you have questions about plan setup, compliance, or employee communication, Saveday’s experts are there to assist you via phone, email, and live chat services. Enjoy peace of mind knowing that you have a trusted partner to rely on for your 401(k) needs.

    3. Expertise and Compliance:

    Saveday’s retirement plan experts are well-versed in 401(k) regulations, compliance requirements, and complimentary custodial and fiduciary services. By partnering with saveday, you can ensure that your plan is administered accurately and fully compliant with government regulations. Saveday takes care of the intricate details, allowing you to focus on your core business activities.

    4. Cost Savings:

    Opting for Saveday can save you money compared to the alternative of hiring additional staff or outsourcing your 401(k) administration. By leveraging Saveday’s simple and streamlined platform, you can reduce overhead costs and allocate resources to other important business areas.

    5. Employee Engagement and Education:

    Saveday offers robust employee engagement tools and resources to empower your workforce. With features like intuitive investment options, educational materials, and retirement planning tools, Saveday helps employees understand and maximize their 401(k) benefits. Now that they’re engaged, employees are more likely to appreciate and utilize their retirement plans effectively.

    In short, managing the HR administrative burden of your 401(k) plan doesn’t have to be overwhelming. By partnering with Saveday, you gain access to expert guidance, streamlined plan administration, cost savings, and enhanced employee engagement. Saveday’s friendly and knowledgeable team will guide you through the complexities, ensuring compliance and efficiency every step of the way. 

    Simplify your HR administrative tasks and provide valuable retirement benefits to your employees with Saveday as your trusted 401(k) partner. Better yet, experience peace of mind and focus on what matters most – growing your small business to new heights.

    Affordable and Hassle-Free 401(k) Plans for Small Businesses | Saveday

    Small businesses save more with SaveDay

    As a small business owner, providing a 401(k) plan for your employees is a significant step towards their financial well-being and your company’s growth. However, the cost associated with setting up and managing a 401(k) plan can be a concern. Many companies tack on expensive startup fees, monthly and annual employer costs, per-employee fees, and other buried charges.

    But with saveday, you can offer this valuable benefit without any startup cost. Saveday simplifies 401(k) plans for small business owners, eliminating the financial burden and reducing administrative hassle.

    5 Ways Saveday Makes 401(k)s Affordable for Small Business

    1. Cost Savings: Saveday’s low cost removes the financial barrier that deters small businesses from offering retirement benefits. By waiving setup fees, saveday provides a robust savings solution within your budget.
    2. In-House Strategy: Saveday’s fully-bundled strategy eliminates at least 50% of industry average plan costs. With all plan requirements handled in-house, including Registered Investment Advisor, Broker/Dealer, and 401(k) Administrator, we save you money by not charging for revenue sharing with distribution partners.
    3. No Hidden Fees: Unlike competitors, saveday offers transparent pricing and a low AUM fee. We don’t burden you or your employees with monthly, annual, or per-employee fees. More money stays with you and your employees, as it should in retirement planning.
    4. Simple Plan Offerings: Saveday provides simple and flexible plan options tailored to your business’s needs. Whether you’re a sole proprietor or a growing startup, we can customize a 401(k) plan that aligns with your goals. Unlike other providers, we treat all plans equally, ensuring fair access to desirable features.
    5. Seamless Administration: Saveday’s intuitive platform simplifies plan administration. With payroll integration and automated processes for onboarding, contribution management, and reporting, we streamline the administrative tasks associated with a 401(k) plan. Focus on running your business while we handle the rest.

    Saveday’s convenient to start, simple to use, and wildly affordable 401(k) plans enable small business owners to offer this vital benefit without financial strain. By providing a 401(k) plan, you support your employees’ financial future and attract top talent to your business. With legislative tailwinds pushing towards mandatory retirement benefits, take the proactive step and offer benefits today to avoid state-mandated deadlines and penalty fees. Trust saveday to make retirement planning accessible, affordable, and hassle-free for your business.