The U.S Department of Labor reported last year that, for the “plan year” that began in 2017, 702,000 employers maintained a 401k, 403b, defined benefit, or similar tax-qualified plan for 94.6 million employees. (These numbers do not include 2,500 union-sponsored plans, 4,700 “multiple employer plans” or MEPs, one-person business-owner-only plans, and IRA-based plans such as SEPs and SIMPLEs.) Remarkably, though, the American Retirement Association recently estimated that nearly 5 million employers do not have a plan, causing 28,280,000 full-time employees to have no access to an employer-provided retirement savings vehicle. Many likely are small businesses . . . but this is incredible, given how easy and relatively inexpensive it is to start and maintain a 401k, 403b, or similar plan. And there are potentially significant Federal Tax Credits for the employer for the first 3 years after starting such a plan. ACSI is available to discuss whether an employer-sponsored plan is right for your business.
