Leading financial advisor Cary Stamp, based in Jupiter, FL, offers an overview of the exceptional tax credits up to $5,000 per year for businesses that launch new 401k plans (made available through a Secure Act provision).
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Hi, I’m Cary Samp with Cary Stamp & Co., and this is a Principled Wealth Moment for business owners or anybody that works in a business. I’ve got a tip that most people don’t know about, that’s a phenomenal opportunity.
Did you know that as part of the Secure Act that was passed at the end of last year, a company that establishes a new 401k plan, you can’t already have one, a new plan, can get a tax credit… I said the word credit, I didn’t say deduction… a tax credit of up to $5,000 just for setting up a new plan. Why would you want to do it? In addition to getting the five grand, it’ll help you recruit new employees or retain the people that you have, you get to let your employees make contributions for their retirement for their own benefit, and as the business owner, you get to have a tax deduction for the cost of the plan, what you contribute to the plan for yourself and what you contribute to the plan for the employees.
Everybody thinks that a 401k plan is only for big companies, but it’s also for anybody that wants to put some money away for retirement in a tax efficient manner. And if I offer you $5,000 just to set up the plan, would you want to talk to me? I’m Cary Stamp. This has been a Principled Wealth Moment.