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. 

Understanding 401(k) Vesting: Securing Your Retirement Funds

Hey savvy savers!

Emma here, back with another dose of financial wisdom. Today, I’m diving deep into a term that floats around a lot with 401(k)s: vesting. Unfortunately, it’s not about thrifting a quirky vest with your friends (but I’m free Saturday if that sounds fun to anyone else). Vesting, in the 401(k) world, plays the role of determining when you officially “own” your retirement fund. 

What Is Vesting?

Vesting refers to the amount of time you need to be with your employer before you “own” or have the full right to the employer contributions made to your 401(k) account. Now, you always have 100% ownership of the funds you contribute from your paycheck. The schedule comes into play with the additional funds your employer might toss into the mix. 

Types of Vesting Schedules

  1. Immediate: You own 100% of your employer’s contributions as soon as they hit your account. So, if you decide to leave the company, you can take all of those contributions with you. Cha-ching!
  2. Graded: Here’s where patience pays off. With graded vesting, a specific percentage of your employer’s contributions becomes vested with each year of service. For example, after year one, you might be 20% vested, meaning you own 20% of your employer’s contributions. This percentage typically increases each year until you reach 100% vesting.
  3. Cliff: With cliff vesting, you’ll have to work for the company for a specific period (often around 3 years)  before you’re 100% vested. If you leave before this period, you might forfeit all employer contributions. But once you’ve reached the “cliff”, you’re fully vested. 

Why It Matters

Vesting is an incentive. Companies want talented employees (like us) to stick around. Offering a 401(k) match is attractive, but they might not want to hand over all those funds immediately if there’s a change you might leave early. The vesting schedule ensures that you’re rewarded the longer you stay. 

Navigating Your Vesting Schedule

First things first: check your 401(k) plan details or chat with HR. Know where you stand. If you’re considering a job change and you’re close to being fully vested, it might be worth waiting a bit, so you don’t leave money behind.

Saveday has been a lifesaver for working through nitty gritty details like these. Find out more tips and tricks with their blog here.

Until next time!

-Emma

Boosting 401(k) Participation: The Power of Automatic Enrollment for Small Businesses

Small business leaders know ensuring financial wellness is paramount. Optimal participation in 401(k) plans can be your big solution to give your employees and business the future they deserve. The answer is simpler than you think: Automatic Enrollment. 

Understanding Automatic Enrollment

Automatic Enrollment is straightforward. When new employees come on board, they are automatically integrated into the 401(k) plan. They, however, maintain the choice to opt-out if it doesn’t align with their financial plans. What seems like a small adjustment can significantly elevate participation rates.

Data Speaks Louder than Words 

  1. Increased Participation: Vanguard’s recent findings emphasize the efficacy of automatic enrollment. An impressive 90% of newly hired individuals stay committed to their employer’s plan for at least three years after their auto-enrollment.
  2. Reaching the Underrepresented: The study also underscores automatic enrollment’s role in democratizing savings. It remarkably boosts 401(k) participation rates among historically underrepresented groups, such as the young, those earning lower wages, and minority employees.
  3. Simplifying the Process: The true genius of automatic enrollment resides in its streamlined approach. It transitions those who might never contribute into proactive savers. Over time, this not only bolsters their financial standing but also fosters a sense of security and well-being. Even just $1 a day can mean thousands in the future.

Why Saveday Champions Automatic Enrollment

At the heart of saveday lies a commitment to amplifying employee savings without any added burden on employers. We’ve meticulously crafted our platform to be in perfect sync with businesses keen on embracing the future. When savings become an effortless endeavor for your employees, it directly correlates with heightened job satisfaction and unwavering loyalty.

Incorporating automatic enrollment isn’t merely a tactical move—it’s a visionary step. It empowers you to proactively confer a straightforward yet potent benefit, shaping a financially robust future for your workforce.

Tackling High Turnover Rates with Saveday’s Streamlined 401(k) Solution

High turnover rates can be a relentless cycle for small businesses. With employees coming and going, it becomes a steep climb to invest in long-term benefits like 401(k) plans. But here’s an industry secret: offering 401(k) benefits can be the key to reducing high turnover rates, fostering loyalty, and boosting overall employee morale. The best part? We’ve made it hassle-free.

Let’s journey into the world of high turnover jobs and discover how saveday’s straightforward and cost-effective 401(k) solution can become the game-changer small businesses have been waiting for.

The High Turnover Puzzle

Industries plagued with high turnover rates, such as retail, hospitality, and fast food, often face the challenge of an ever-changing workforce. This flux can amplify training costs, decrease productivity, and lead to uneven customer experiences.

 A question often arises – if employees are constantly transitioning, is there value in offering long-term benefits?

The missed mark here is that a primary reason for these high turnover rates might be the absence of such benefits. In today’s world, where everyone’s seeking financial security, a 401(k) plan can be the difference between an employee choosing to stay or seeking greener pastures.

Why Saveday is the Solution to High Turnover Rates

Enter saveday. Our streamlined, fully automated 401(k) solution has been crafted with the challenges of high turnover rates in mind. How does Saveday tackle the high turnover rate dilemma?

  1. Attract and Retain Quality Talent: In a world of high turnover rates, stand out by offering a 401(k). It’s an unmistakable message to potential hires that you prioritize their future. This invaluable perk attracts the best and makes them want to stick around, effectively reducing those pesky high turnover rates.
  2. Simple and Hassle-Free: We know small businesses already have a full plate. That’s why saveday ensures the setup is as easy as 1-2-3. And once you’re onboard, our automated payroll integration and auto-enrollment ensure your plan runs smoothly with minimal oversight. You get to concentrate on what you love – growing your business.
  3. Increase Employee Satisfaction: Employees value employers who value them. Offering a future-focused benefit like a 401(k) boosts morale, leading to more dedication, better performance, and, you guessed it, lower turnover rates.
  4. Tax Incentives: If you decide to contribute to your employees’ 401(k) plans, tax deductions await you. With saveday, you get a double win: free setup and potential tax benefits.

Elevate Your Business with the Right Move


It’s time to challenge the status quo. Let’s visualize this: your business thriving, with dedicated employees, customers receiving consistent, top-notch service, and the shadow of high turnover rates becoming a distant memory. With saveday, this can be your reality.

By offering a 401(k) through saveday, you’re investing in your employees’ futures and cementing the foundations of your business. And remember, while the costs to you are negligible, the potential benefits in terms of employee retention and satisfaction are monumental.

So, if you’re tired of battling high turnover rates, maybe it’s time for a new approach. One that focuses on long-term employee benefits. Let saveday guide you toward a stable, prosperous future for both your business and your indispensable team.

Tax Advantages for Small Businesses: Maximizing Savings and Boosting Growth

As a small business owner, you understand the importance of optimizing every aspect of your financial strategy. When it comes to retirement planning, saveday is here to help you unlock a world of tax advantages that can benefit both your business and your employees. In this blog post, we will explore the remarkable tax benefits offered by saveday and how they can contribute to substantial savings, enhanced growth, and a brighter financial future for your small business.

Tax-Deferred Contributions:


With saveday, you can take advantage of tax-deferred contributions to your retirement plan. This means that the money you contribute to your 401(k) or other retirement savings plan is deducted from your taxable income for the year. By reducing your taxable income, you lower your overall tax liability and keep more money in your pocket.

Employer Contributions:


Saveday allows small business owners to make employer contributions to their retirement plans. These contributions are tax-deductible for your business, resulting in potential tax savings. By investing in your employees’ futures through employer contributions, you not only provide valuable benefits but also enjoy tax advantages that can positively impact your bottom line.

Tax Credits for Startups:


If you are a startup or a small business with fewer than 100 employees, you may be eligible for tax credits when implementing a retirement plan. Saveday can guide you through the process of accessing these valuable tax credits, allowing you to save even more while building a strong foundation for your business’s future.

Employer-Sponsored Retirement Plans:


Saveday empowers small businesses to establish and contribute to employer sponsored retirement plans. These plans offer valuable tax advantages, allowing you to deduct employer contributions as a business expense while helping your employees save for retirement. By leveraging our expertise, you can navigate the intricacies of these plans and optimize the tax benefits for your business and employees.

Stay Ahead of Changing Tax Laws:


Navigating the ever-changing landscape of tax laws can be challenging, especially for small businesses. Our compliance team stays up to date with the latest tax regulations and ensures that your retirement plan remains compliant. With their expert guidance, you can confidently navigate tax laws and make informed decisions that maximize your tax advantages.

We are committed to helping small businesses unlock the full potential of tax advantages when it comes to retirement planning. By taking advantage of tax-deferred contributions, employer contributions, tax credits, and specialized plans like the SEP IRA, you can maximize your savings, reduce your tax liability, and fuel the growth of your small business.

Consult with our experts today and create a tailored retirement plan that aligns with your business goals and secures a prosperous future.

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.

    Revitalizing Your Small Business with the Power of a 401(k) Plan

    Running a small business can be a tough game, especially when you’re trying to bring the best people on board. A big part of standing out as an attractive employer is having great perks for your employees, including a 401(k) plan. In this article, we’ll look at how offering a 401(k) plan can help make your small business a top choice for talented workers.

    Looking After Your Employees

    Offering a 401(k) plan as part of your employee benefits shows you care about your employees’ future. It shows you’re interested in helping them save for retirement, which builds trust and job satisfaction. By offering a 401(k) plan, you’re giving your employees a chance to save for their future, making your business a stable and secure place to work. 

    Keeping Employees Engaged

    Having a 401(k) plan can get your employees more involved in their work by giving them a way to save for retirement. It helps them feel like their job is important to their long-term financial success. Plus, it shows employees you’re behind them on their retirement savings journey, creating a positive workplace that encourages loyalty and hard work. Happy employees are less likely to pursue alternate employment opportunities, meaning you keep your best workers longer!

    Staying Ahead in the Job Market

    A 401(k) plan sets your small business apart. It gives you an edge over your competition, making you an employer of choice. People prefer jobs that secure their future. In a SHRM survey, 71% of HR professionals said retirement benefits mattered to employees.

    That’s why top talent is your key to small business success. A good benefits package, like a 401(k), shows you care about your employee’s future. But saving for retirement isn’t all a good 401(k) offers. It also promotes involvement, loyalty, and job satisfaction. Start your 401(k) plan today. Attract and retain the best talent. Push your small business to new heights of success.

    Are IRAs Holding You Back? Meet the Unstoppable Force of a Saveday 401(k)

    Welcome, savvy savers, to an insightful exploration of retirement savings options! Today, we’ll dive into the realm of Individual Retirement Accounts (IRAs) and compare them with the game-changing saveday 401(k). By the end of this informative journey, you’ll be equipped with the knowledge to make an informed decision and pave the way for a financially secure future.

    IRAs: Versatility with Limitations

    Individual Retirement Accounts (IRAs) offer a range of advantages and disadvantages. On the positive side, IRAs provide individuals with flexibility, allowing contributions even outside of employer-sponsored plans. (Meaning you don’t have to get one through your job.) They offer a variety of investment options and can be self-directed, giving you control over your retirement funds. 

    However, IRAs have contribution limits that may restrict your ability to save larger sums. Additionally, they lack the benefits of employer matching contributions that can boost your savings potential. 

    Saveday 401(k): Revolutionizing Retirement Savings

    Now, let’s explore the distinctive features of the 401(k) that sets it apart as an exceptional choice for your retirement savings:

    1. Enhanced Contribution Limits:

    401(k)s offer higher contribution limits compared to IRAs, allowing you to save more for retirement. By maximizing your contributions, you can accelerate your savings growth and build a more substantial nest egg. This increased capacity sets the stage for a more financially abundant retirement.

    1. Employer Matching Contributions:

    One of the standout advantages of the 401(k) is the potential for employer matching contributions. This means that for every dollar you contribute to your 401(k), your employer may match a portion of it. Employer matches represent free money towards your retirement savings, amplifying your investment potential and boosting your long-term financial security.

    1. Streamlined Administration:

    Saveday takes the complexity out of managing your retirement savings. Our user-friendly platform simplifies administrative tasks, automates processes, and offers seamless integration with payroll systems. This streamlined approach saves you time and effort, allowing you to focus on what truly matters – while growing your retirement funds.

    1. Simplified Investment Options:

    Saveday uses ETFs, which are like a basket of securities, including stocks and bonds and other assets, that can be traded whenever the markets are open. ETFs combine the diversification benefits of mutual funds with the ease of stock trading. This approach is a simple way to access the financial markets without having to pick assets yourself, and the diversity of the securities enhances your potential for long-term growth and financial success.

    When it comes to navigating retirement savings, the choice between IRAs and 401(k)s is a crucial one. While IRAs provide versatility, 401(k)s empower you with enhanced contribution limits, potential employer matching contributions, streamlined administration, and simplified investment options.

    Focus your financial future and choose a saveday 401(k) to unleash the full potential of your retirement savings. With saveday, your retirement journey becomes an exciting and rewarding adventure. We look forward to being your trusted partner in building a prosperous future.

    Employer Matching Contributions: The Cherry on Top of Your 401(k) Sundae

    Welcome back, fellow 401(k) newbies!

    Emma here, your friendly guide to all things 401(k). Today, we’re venturing into the exciting world of employer matching contributions. Why? Well, because I recently discovered that my own employer offers this awesome benefit. Everyone told me this was great news. At first I thought, “What’s the big deal”? I decided to look into it further and see how big of a difference matching would make for my portfolio. Turns out, it is a pretty sweet deal after all!

    What Are Employer Matching Contributions, Anyway?

    Imagine you’re at a party, and someone announces that there’s free ice cream for everyone. I mean, who doesn’t love free ice cream, right? Well, employer matching contributions are like that delectable treat, but for your 401(k) instead. It’s your employer saying, “Hey, we think you’re pretty awesome, so we’ll throw in some extra cash to help you save for retirement.” Now that’s what I call a sweet deal!

    How Does It Work?

    Your employer sets a “matching formula”, which is usually a percentage of your salary or your own contributions. For example, if your employer offers a 50% match on up to 4% of your salary, it means that for every dollar you contribute up to 4% of your salary, your employer will toss in an extra 50 cents. It’s like getting a bonus on top of your hard-earned savings. Who doesn’t love free money?

    The Power of Doubling Your Savings

    When your employer matches your contributions, it’s like they’re handing you an extra scoop of free savings. That additional cash will work its magic through your investments and compound interest, generating additional growth and returns without you having to lift a finger. 

    So, seize this sweet opportunity and contribute as much as you can to make the most of those matching contributions. I’ve been amazed at how quickly my money multiplies with the extra boost.

    Maximize Your Match and Seize the Sun-dae

    Employer matching contributions are like the cherry on top of your 401(k) sundae. They’re a sweet boost to your retirement savings without any extra effort on your part. So, make sure to contribute at least enough to take full advantage of your employer’s matching program. Meaning, if they offer a 5% match, contribute the full 5%. 

    Don’t leave that ice cream sitting there, waiting to be devoured!

    If you have any more questions or want to explore further, head over to the Saveday blog. They have a toppings bar full of resources to help you make informed decisions and unleash the full potential of your retirement savings. 

    Join me next week to take a scoop out of the hidden secrets behind types of securities! 
    Keep saving!
    -Emma

    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.