Many states have started, or may soon start, programs that require small businesses to automatically enroll employees in a state IRA program if they do not have a 401k or other workplace retirement plan.
The intention of the state plans is noble, as encouraging saving for retirement is fundamentally good for everyone and any saving is better than not saving. That said, there are compelling reasons to start a 401k plan now and avoid the state mandate.
6 Ways a WELLthBuilder 401k is Better
A State-Mandated IRA Program | WELLthBuilder 401k | ||
| 1 | Employee Contribution Limit Catch up Cont. Limit for Age 50+ | $6,500 $1,000 | $22,500 $7,500 |
| 2 | Company Match Option | No | Yes |
| 3 | EE + ER Contribution Limit Including Catch up Contributions | $6,500 $7,500 | $66,000 $73,500 |
| 4 | Choice in Plan Type or Design | No | Yes |
| 5 | Tax Credits for Starting New Plan | No | Yes |
| 6 | Advisor-Supported | No | Yes |
Save More. Enjoy More Benefits.
A WELLthBuilder 401k more than meets the requirements of state programs. It provides a much greater opportunity to save for retirement while enabling your company to take advantage of generous SECURE Act 2.0 tax credits.
WELLthBuilder is presented by Strategic Retirement Partners (SRP), a leading national team of retirement plan-focused financial advisors. Let’s talk about your company’s retirement plan needs.