Tuesday, December 5, 2017
For a number of years, policymakers have been focused on finding ways to help Americans become better financially prepared for retirement. Studies have found having access to payroll-deduction retirement savings plans at work makes it 15 times more likely Americans will save for the future. Consequently, policymakers have focused their attention on smaller companies. About 36 percent of Americans work for companies with fewer than 100 employees, and many of these businesses do not offer retirement plans.
Last July, Oregon launched OregonSaves, the state's auto-IRA program. Companies that don't have workplace retirement plans are required to facilitate the program by:
"Most [small and medium-sized employers] did not have a full understanding of how 401(k) plans work, and few were familiar with plans or incentives designed for small businesses, such as the Simplified Employee Pension (SEP) Plan, the Savings Incentive Match Plan for Employees (SIMPLE), or the small employer tax credit for retirement plan startup costs."
If you're interested in learning more about retirement plan options for small businesses, sole proprietorships, or freelancers, contact us today!