For small businesses, offering competitive retirement benefits can be costly and complex. But the tides are changing with the SECURE Act 2.0. This recent legislation introduces enhanced Multiple Employer Plans (MEPs). This allows businesses, irrespective of their size or industry, to pool resources and provide joint 401(k) plans to their employees.
At its core, MEPs under the SECURE Act 2.0 offer a streamlined approach to retirement planning, thus making it more accessible and efficient for small businesses. Here’s why that matters:
- Reduced Administrative Load:
Joining a MEP lessens the administrative burden placed on small businesses. In essence, most responsibilities are shouldered by the MEP provider. This consequently minimizes paperwork and compliance issues for participating employers.
- Cost Efficiency:
Pooling resources with MEPs often means reduced fees and potentially superior investment choices, which leads to noteworthy savings for small businesses.
- Competitive Benefits:
MEPs empower small businesses to present retirement plans that rival those of big corporations. Therefore, this helps ensure they attract and retain talented employees.
- Risk Management:
The collaborative nature of MEPs diminishes fiduciary risks for individual employers, as these are often shared or completely handled by the MEP provider.
Your partnership with saveday can make navigating these changes even simpler. We’re designed to guide businesses through retirement nuances at $0 cost to them. With the SECURE Act 2.0, and the potential of MEPs, small businesses are in a stronger position than ever to secure a better retirement future for their workforce. You can help ensure a brighter future for your team by partnering with saveday today.