As Job Market Maintains an Upward Trend, Small Businesses Offered Savings on New 401(k) Plan Setup Before Oct. 1 Safe Harbor Deadline

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Jul 24, 2023, 09:00 ET

SEATTLE, July 24, 2023 /PRNewswire/ -- This summer has seen the continuation of a steady rise in employment. According to recent data from the Bureau of Labor Statistics, the US gained 209,000 jobs in June, marking the country's 30^th consecutive month of new job growth. And with new jobs come new incentives to attract potential employees, like 401(k) plans.

To stay competitive and attract top talent, many small business owners are now learning the ropes of offering 401(k) benefits for the first time. With all this in mind, ShareBuilder 401k is offering cost savings for employers looking to set up their first 401(k) plan before the Oct. 1^st IRS deadline.

And the timing couldn't be better, considering the new Secure Act 2.0 legislation in effect as of this year. This legislation offers tax credits that, when paired with an affordable 401(k) provider, can more than cover the ongoing administrative costs of offering 401(k) benefits for companies under 50 employees starting their first plans. The tax credit and tax deductions for employer matching contributions are also extensive.

There is a simple 401(k) plan design that many small businesses choose called a Safe Harbor 401(k). Safe Harbor 401(k) plans offer a variety of benefits and savings for business owners seeking to lower their personal taxes, save for retirement, and help attract and retain top talent. What's more, the Safe Harbor 401(k) automatically satisfies IRS plan testing requirements and enables the option for any employee — including high earners — to maximize their contributions.

Starting today, businesses that sign up for ShareBuilder 401k's Safe Harbor 401(k) plan can receive:

66% off Safe Harbor and Traditional Plan setup between July 24 – August 7, OR
33% off Safe Harbor and Traditional Plan setup between August 8 – August 14

"It's a common misconception that 401(k) plans are 'not for' or are out of reach for small business owners," said Stuart Robertson, CEO of ShareBuilder 401k. "The reality is, getting started with these benefits is more affordable than you might think, and the Safe Harbor 401(k) plan design helps make it simple to manage. A business with 10 employees, for instance, will pay less than $100 a month for their 401(k) plan — and then, of course, they'll qualify to receive tax credits for the first three years that completely cover employer plan's cost."

ShareBuilder 401k's Safe Harbor plans also automatically satisfy non-discrimination compliance tests by requiring a business to provide an immediately vested match. For employers concerned about the cost of providing a match, rest assured that these plans are 100% tax deductible.

The federal deadline to start a Safe Harbor 401(k) plan is Oct. 1. However, businesses should purchase and complete online installation by August 14^th, as it typically takes time to allow for employee notifications and other set up needs to ensure the Oct. 1 deadline is met.

About ShareBuilder 401k
ShareBuilder 401k is a leading digital 401(k) provider specializing in low-cost, all-ETF retirement products and resources for small- to mid-sized companies, including owner-only businesses. Founded in 2005 and now serving more than 6,500 businesses across the US, ShareBuilder 401k is a pioneer of the index-based 401(k), digital quoting and purchasing of retirement plans, and providing investment management (ERISA 3(38)) services for every client's fund roster. ShareBuilder 401k is committed to further expanding access to retirement plans and leading more Americans to save through intuitive technology, low costs and quality education and support. More information on the company can be viewed online at: https://www.sharebuilder401k.com/

SOURCE ShareBuilder 401k