Congress just made retirement planning easier for small business owners and American workers
December 23, 2019 by Nationwide
COLUMBUS, Ohio, Dec. 19, 2019 /PRNewswire/ — Congress just made it easier for small businesses to offer a workplace retirement plan to their millions of employees. The Setting Every Community Up for Retirement Enhancement (SECURE) Act’s provisions included in Congress’ appropriations package were today approved with the passage of a continuing resolution to fund the federal government. Nationwide – one of the largest insurance and financial service providers in the United States – applauds this bipartisan legislation, as it is a significant step forward for our retirement system and was more than a decade in the making.
“The SECURE Act is a much-needed and highly anticipated step in creating new pathways to retirement security. We have new opportunities today to protect people, businesses and futures in proven and innovative ways,” said John Carter, president and COO of Nationwide Financial.
Emphasizing the importance of this legislation, according to Nationwide’s recent business owner survey1, 80% of small business owners believe the SECURE Act will allow them to offer a 401(k) plan that rivals those offered at large corporations. Among those who are familiar with the SECURE Act, 84% believe the legislation should make it easier for small business owners to offer a 401(k). In addition, nearly nine in 10 agree that the legislation provides both their business and employees tax advantages (88%), helps attract and recruit top talent (88%) and helps improve employee retention (86%).
“With record low unemployment rates making it harder for small businesses to retain top talent, paired with America’s growing retirement preparedness challenge, the SECURE Act offers a solution for making workplace retirement plans easier to offer: open Multiple Employer Plans (MEPs). MEPs allow small businesses to pool their resources to offer a workplace retirement plan that is cost effective and administratively simpler,” Carter added.
For the past decade, Nationwide has engaged with lawmakers on additional legislative reforms to ensure private-sector small businesses’ needs are addressed and their employees are supported. As part of the retirement reform discussions, Nationwide helped to develop the open MEPs concept that is a key part of the SECURE Act.
In addition to MEPs, the passage of the SECURE Act also advances a provision that provides small business owners a financial incentive to offer their employees a plan, thus increasing American workers’ access to workplace retirement plans. The legislation provides an annual tax credit that covers up to $5,000 of plan costs for the first three years that an employer offers a workplace retirement plan.
“Nationwide is a strong supporter of enhancements to our retirement system that enable and protect the future for Americans and small businesses. We applaud Congress for the bipartisan support of this legislation and urge the president’s swift signature,” Carter said.
Carter added the company will be working with firms and advisors during the implementation phase of the new provisions.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.
1Nationwide commissioned Edelman Intelligence to conduct a 11-question, online survey between August 22-28, 2019, among a sample of 400 U.S. business owners. Business owners are defined as having between 11-500 employees, being 18 years or older, self-reporting as either a sole or partial owner of their business, and offer a 401(k) plan to their employees. The margin of error for this sample was +/- 4.9 percent at the 95 percent confidence level. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.
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