Unlocking the Power of 401K: What Small Business Owners Need to Know for Growth and Retention - Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent - Episode # 132

Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent

How can small businesses take advantage of Secure Act 2.0 tax credits to set up a 401k plan, attract and retain employees, and stay compliant with state mandates? In this episode, we’re diving into why 401k plans are a game-changer for small businesses. Many assume retirement plans are only for large corporations, but that’s no longer the case. With recent legislation like Secure Act 2.0 offering significant tax credits, setting up a 401k is more accessible and beneficial than ever. Joined by Charlie Cote from JP Morgan and Kevin Gaston from Vestwell, we’ll explore how small businesses can leverage these plans to attract and retain top talent, comply with evolving state mandates, and even build personal wealth as business owners.

Takeaways:

• Take full advantage of the significant tax credits available under Secure Act 2.0 for setting up and maintaining a 401k plan. These credits can help offset costs and even match employee contributions, making the plan financially feasible for your business.
• Work with modern 401k providers that offer streamlined setup and automated processes. Look for features like payroll integration that reduce the administrative burden on your business.
• Opt for providers that offer co-fiduciary services to share the fiduciary responsibilities. This can minimize your liability and ensure compliance with regulatory requirements without overwhelming you with paperwork.
• Stay informed about state-level mandates that require businesses to offer retirement plans. Proactively setting up a 401k can help you avoid future penalties and comply with local regulations.
• Use vesting schedules and employer-matching contributions as tools to attract and retain top talent. These features not only make your benefits package more competitive but also provide incentives for employees to stay with your company longer.
• Educate your employees about the benefits of participating in a 401k plan, including tax advantages and long-term financial security. An informed workforce is more likely to engage and take advantage of the benefits offered.

Quote of the Show:

• " You can get wealth creation and employee retention within your 401k plan if you design it the right way." - Charlie Cote

Links:

• Charlie’s LinkedIn: https://www.linkedin.com/in/charlie-cote-25202b20/
• Kevin’s LinkedIn: https://www.linkedin.com/in/kevingaston/
• Vestwell: https://www.vestwell.com/
• J.P. Morgan LinkedIn: https://www.linkedin.com/company/jpmorganassetmanagement/about/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006