Business Times of Edmond, Oklahoma March 2020 - Page 25

The major provisions affecting plan sponsors (employers) are as follows: Unrelated employers can now create a single retirement plan. Starting in 2021, the new rules reduce the barriers to creating and maintaining multi- employer plans, which will help increase opportunities for small employers to band together to obtain more favorable investment results, while allowing for more efficient and less expensive management services. New small employer automatic plan enrollment credit. Starting in 2020, the new rules create a new tax credit of up to $500 per year to employers to defray start-up costs for new 401(k) plans and SIMPLE IRA plans that include automatic enrollment. The credit is in addition to an existing plan start-up credit, and is available for three years. The new credit is also available to employers who convert an existing plan to a plan with an automatic enrollment design. Increased credit for small employer retirement plan start-up costs. The new rules increase the credit for plan start-up costs to make it more affordable for small businesses to set up retirement plans. Starting in 2020, the credit is increased by changing the calculation of the flat dollar amount limit on the credit to the greater of (1) $500, or (2) the lesser of: (a) $250 multiplied by the number of non-highly compensated employees of the eligible employer who are eligible to participate in the plan, or (b) $5,000. The credit applies for up to three years. Allowing long-term part-time employees to participate in 401(k) plans. Starting in 2021, the new rules will require most employers maintaining a 401(k) plan to have a dual eligibility requirement under which an employee must complete either a one-year-of-service requirement (with the 1,000-hour rule), or three consecutive years of service where the employee completes at least 500 hours of service per year. Additional rules related to various calculations of non-discrimination testing and other plan provisions. The information above is only a summary and not all-inclusive. You will want to discuss these and other matters with your tax professional to assure you benefit from the new provisions. JIM DENTON is the managing partner of Arledge & Associates, PC where he is responsible for providing leadership to the CPA and Wealth Management firm, Summit Capital Advisors, LLC. Mr. Denton empowers his clients, so they may live their best life. He may be reached via email at jim@jmacpas.com. Securities offered through Avantax Investment Services SM , Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services SM , Insurance services offered through an Avantax affiliated insurance agency. GROWING EDMOND PHOTOS PROVIDED | EDMOND AREA CHAMBER OF COMMERCE Ribbon Cuttings RIBBON CUTTING AT ANYTIME FITNESS RIBBON CUTTING HELD FOR THE CHRISTIAN BROTHERS Show Some Love LLC, doing business as Anytime Fitness recently held a ribbon cutting with the Edmond Area Chamber of Commerce to celebrate their grand opening at 58 East 15th Street. Anytime Fitness is a 24-hour health and fitness club with more than 4,000 franchised locations in 50 countries. The gym facilities are open 24 hours a day, 365 days out of the year. Owner Jason Mack said there was a need for a full-access gym in central Edmond and decided to make it a reality. Christian Brothers Automotive recently held a ribbon cutting with the Edmond Area Chamber of Commerce to celebrate their grand opening at 3600 E. Second Street. Christian Brothers Automotive offers auto repair service and maintenance for all makes and models. They have certified ASE technicians using the same manufacturer recommended equipment and diagnostic tools as the dealerships, but with local ties and industry associations to offer better prices. Their goal is to become a trusted partner with customers and to build a long-term relationship taking care of their family. For more information, visit www.cbac.com/eastedmond. March 2020 | The Business Times 25