Attention Plan Sponsors:
Who Does the New SECURE 2.0 Legislation Help and How?
The new SECURE 2.0 legislation is a game changer for retirement savings planning. However, there are clear benefactors to the legislation. Who benefits the most from this new legislation? How does it help these employers and individuals?
Read on to learn about the new SECURE 2.0 legislation, who it helps, and how it helps them.
High-Wage Earners Are the Big Winners
SECURE 2.0 provides high-wage earners with the best benefits when it comes to retirement savings planning. High-wage earners have the most to lose when investments or retirement savings planning methods go south. However, with SECURE 2.0, they receive more benefits to help their money grow more effectively and efficiently.
Here are the two most important benefits of the new SECURE 2.0 legislation for high-wage earners.
- Saving money on Incme and capital gain taxes – High-wage earners can thank the SECURE 2.0 legislation for helping them save money in both their income and capital gains taxes.
- Make their retirement savings last longer – As a result of the SECURE 2.0 legislation, high-wage earners can see their retirement savings last longer to allow them to enjoy retirement from an earlier age. The new SECURE 2.0 legislation allows high-wage earners to save more money, meaning they will have more time and assets to enhance their legacies.
Smaller Companies Also Win with SECURE 2.0
Small companies also see benefits due to the new SECURE 2.0 legislation. The law provides them with additional incentives should they choose to start a 401(k) plan for their employees. Some of the benefits that SECURE 2.0 offer small companies to begin a 401(k) plan include the following:
- Tax Credits – For small businesses, tax credits are more advantageous than tax deductions. The new SECURE 2.0 legislation offers small businesses tax credits for starting a 401(k) plan.
- Easier plans to start up – The new SECURE 2.0 legislation allows retirement savings planning diversity, thereby offering small businesses easier plans to start up.
- Less expensive administration costs – Under the new SECURE 2.0 legislation, small businesses have the option of offering retirement savings options that have lower administration costs.
Conclusion
The new SECURE 2.0 legislation offers serious benefits for high-wage earners and small businesses and their retirement savings planning efforts. A qualified retirement savings advisor can help you understand the benefits of the new SECURE 2.0 legislation for your retirement planning strategies. The retirement planning advisors at Retirement Plan Services Group can help. Call Scott Tanker at 609-922-0201 or email scott.tanker@pbsrep.com to learn more.