The SECURE Act incentivizes small businesses to offer 401(k) plans by allowing them to take certain tax credits. If 401(k)s are offered, employees of all ages, genders, regions, and industries at SMBs likely will participate. According to data from Human Interest, between 65 and 86% of SMB employees participate if they can. Their contributions average 5 to 10% of wages. This is so even if there’s no employer match (7.1% compared to 7.4% for those with a match).
Alert: Follow coronavirus-related federal tax changes for your business through the IRS.
