The Biden administration recently passed the Consolidated Appropriations Act into law. This included a piece of legislation called the SECURE 2.0 Act of 2022. This legislation is intended to help support Americans in their retirement saving efforts, particularly those employed by a small business.
Craig Reid published a piece on the legislation’s implications as part of his Forbes Finance Council membership. In his piece, Reid discusses topics such as tax incentives, student loan debt support, and automatic saving increases.
SECURE 2.0 incentivizes employers to establish a retirement plan by providing a tax incentive for companies that choose this route. Depending on the size of the company, this tax credit can be up to 100% of the administrative cost for starting the plan over the first five years. Reid explained that this means more Americans will have access to workplace plans now that this provision is effective.