what ’ s working
“ The Covid-19 pandemic has opened our eyes to the importance of financial planning ,” said Deb Brown , president of Forterra , AWB ’ s employer-services subsidiary . “ It has been a stark reminder that things can come at you suddenly and you need to be prepared .”
more incentives , fewer headaches
The SECURE Act builds on existing tax credits to encourage more small businesses to offer retirement plans to their employees . Previously , businesses could receive a tax credit of $ 500 for the first three years after establishing a new retirement plan . That credit increased to $ 5,000 under the SECURE Act . Small businesses can receive an additional tax credit of $ 500 for three years for setting up automatic enrollment features in their plans . These credits could offset any related out-of-pocket expenses for many businesses .
The SECURE Act also makes it easier for small businesses to join multiple employer plans ( MEPs ) and pooled employer plans . Under these plans , multiple employers come together to participate in an open MEP retirement plan , thereby increasing their negotiating power and reducing the administrative burden . AWB members already have access to an existing and thriving multiple employer plan known as MyFuture .
“ AWB was almost a decade ahead when it established MyFuture ,” said Kristofer Gray , principal with Integrity Financial , one of the
“ By offering a 401 ( k ), it empowers my employees to save for themselves and to have a vision of their future .”
— Jacob Alden , president of A & E Relocation Services
three fiduciaries overseeing the plan . “ It ’ s a very mature program now , with great results and great pricing .”
Through MyFuture , Washington businesses of any size can offer high-quality retirement benefits to their employees without having to worry about set-up costs or piles of paperwork . By joining forces and leveraging economies of scale , businesses across the state are able to compete in the marketplace and get better pricing than they would on their own . Professional fiduciaries oversee the administrative and investment-related roles , thereby helping ensure the plan remains in compliance and employees have access to high-quality investment options .
“ MyFuture was built for association members by an association ,” Gray said .
improved recruitment and retention
One of the biggest benefits of offering a 401 ( k ) through the MyFuture program is being able to present a more attractive benefits package to prospective employees . spring 2021 23