The Setting Every Community Up for Retirement Enhancement Act of 2019, better known as the SECURE Act, was signed into law on Dec. 20th, 2019.

These new legislative enhancements create more flexibility for new & existing plans!

Startup Plan Credit Increase

Effective for the plan year 2020, a tax credit of up to $5,000 per/year may be available to employers.

  • ✓ The tax credit is available to employers with between 1 and 100 Non-Highly Compensated Employees.
  • ✓ This credit is available for all qualified plan types, including SEP, SIMPLE, 401(k), Defined Benefit, and Cash Balance plans.
  • ✓ The credit is limited to 50% of the costs incurred with the establishment, administration, and retirement education associated with the plan.
  • ✓ The calculation is $250 per Non-Highly Compensated Employee eligible to participate in the plan (minimum credit of $500, maximum of $5,000).
  • ✓ The period to receive the credit has been extended to 3-years… That could mean up to $15,000 of tax credits for qualifying employers!

Startup Plan Credit Increase

Plan Adoption Extension

Beginning in 2020, an employer can now setup a plan by their tax filing deadline (including extensions).

  • ✓ This means, much like a SEP, a 401(k) Profit Sharing or Defined Benefit Plan can be established past the end of the calendar year!
  • ✓ For employers looking for tax-efficiency, a 401(k) Profit Sharing Plan, and perhaps a Defined Benefit Plan, may provide the solution.

Plan Adoption Extension

**Note** The content of this resource is intended exclusively for marketing purposes.Please confer with your plan consultant for details relating to your unique plan scenario… It is what we are here for!