Saturday, July 11, 2020

SECURE Act: Good News for Business Owners

Latest articles

Oregon FBI goes virtual with ‘Teen Series’

Portland's FBI field office has launched an online learning experience for students designed to let them explore the world of law enforcement.

Lincoln City Police officers arrest identity theft suspects

Lincoln City Police Officer Hayden Tolzman responded to a report of possible identity theft by a male and female at the Shearwater Inn, Sunday, July 5, that led to a foot chase, taser deployment and a stolen gun.

Most restaurants and bars in Oregon following COVID-19 requirements

Oregon Liquor Control Commission inspectors swept across Oregon over the Fourth of July weekend and checked 800 businesses for compliance with social distancing requirements issued by Governor Kate Brown.

Biplane soars through space and time

In the skies over Depoe Bay and Lincoln City, a modern-day barnstormer in an open-cockpit biplane is giving passengers a journey through space and time seldom found at the soulless tarmacs of modern airports.

DA says Clark County Seven did not commit bias crime

Seven Clark County men were recently arrested in Lincoln City for illegal fireworks, yelling racial slurs and using Nazi salutes to harass a black family on Independence Day, prompting the Lincoln County District Attorney to issue a statement about the incident.

Father and son dispute leads to attempted murder charges

Oregon State Police say a son used his truck as a weapon against his father after an altercation while driving on Independence Day, nine miles east of Waldport.

K9 Bonni captures hit and run suspect in Newport

Lincoln County Sheriff K9 Bonni and her handler, Deputy Zach Akin, located and apprehended a man alleged to be the perpetrator of a hit and run on Yaquina Bay Bridge Saturday, July 4.

‘Lil Wes’ is back in Lincoln City and has put cancer in remission

Wesley Allen Michael Culver said he went into shock when he got the news that he had cancer on December 12, 2019 at just 14-years-old.

UPDATED: Seven Clark County men arrested for harassment in Lincoln City

Seven Clark County, Wash. men were arrested on Independence Day by Lincoln City Police for harassing a black family, launching illegal fireworks and causing a disturbance on the beach in front of Inn at Spanish Head. 

Lincoln County reports fourth local COVID-19 death

A 96-year-old woman is Lincoln County’s fourth reported local COVID-19 related death. She died July 2 at her residence and had underlying medical conditions.

Related articles

Getty Images

If you own a business, you know that setting up a retirement plan for yourself and your employees can be challenging. But it may now be getting easier.

Here’s the story: Congress recent passed the SECURE Act, which, among many provisions, includes some key changes designed to help make it easier for business owners to establish retirement plans. And the need is clear: Just slightly more than half of workers at private-sector establishments with fewer than 100 employees have access to a retirement plan, according to the U.S. Bureau of Labor Statistics. And startup costs were named as the biggest impediment to creating such plans, according to research compiled by the Pew Charitable Trust.

The SECURE Act is designed to address this concern in a few different ways:

  • Increased business tax credit for plan startup costs – The maximum tax credit for establishing a retirement plan has been increased from $500 to $5000, although some restrictions apply.
  • Tax credit for automatic enrollment – Some smaller employers who set up automatic enrollment in their retirement plans can now receive a tax credit of $500.
  • Multiple-employer plans (MEPs) – Different companies can now work together to offer employees a 401(k) plan with less administrative work and fewer fiduciary responsibilities than each employer would otherwise carry alone. This provision of the SECURE Act is intended to result in lower costs. These multiple-employer plans (MEPs) have been around for a while, but, until now, they were “closed” in the sense that participating employers needed to share some common relationship, such as membership to the same industry, trade association, etc. But now, these MEPs have been opened up to include unrelated companies.

These new rules may make it easier for you to create and administer a 401(k) or similar plan and potentially increase your employees’ savings rate. However, to determine how your business should respond to these changes, you should consult with your tax and financial advisors.

And don’t forget that you still have other retirement plan options. If you have just a few employees or are self-employed with no employees, you may want to consider a SEP IRA. You fund the plan with tax-deductible contributions, and you must cover all eligible employees – they cannot contribute to the plan. You can contribute up to 25% of compensation, up to $57,000 in 2020. Or, if your business has fewer than 100 employees, you might consider a SIMPLE IRA. Employees may choose to contribute, and you, as the employer, are required to make either matching or nonelective contributions, which are deductible. But while a SIMPLE IRA may be advantageous for your employees, it’s less generous to you, as far as allowable contributions, than a SEP IRA. For 2020, your annual contributions are generally limited to $13,500, or $16,500 if you’re 50 or older by the end of the year. You can also make a matching contribution of up to 3% to yourself.

In any case, if you don’t already offer a retirement plan, consider contacting a financial professional to determine which plan might be most appropriate for your business. A retirement plan is an effective tool for attracting and retaining good employees – not to mention helping you build resources for your own retirement.

This article was written by Edward Jones for use by local Edward Jones Financial Advisor Wendy Wilson.

Edward Jones. Member SIPC

- Advertisement -
Wendy Wilson
Wendy Wilson
As an Edward Jones financial advisor, I believe it’s important to invest my time to understand what you’re working toward before you invest your money. It's also important to understand the level of risk you're comfortable accepting when investing so we can balance it with the steps necessary to reach your long-term goals.

Most popular

Fire strikes historic Otis Cafe on Independence Day

North Lincoln Fire Rescue units swarmed the Otis Cafe shortly before 8 p.m. Thursday to combat a fully involved fire at the iconic restaurant.

Highway 101 hole prompts ODOT to call in geologists

Oregon Department of Transportation officials have called in geologists Thursday to take core samples of a hole on southbound Highway 101 in Otis.

Local men face drug, weapons charges following ATF search and arrest raid

Two Lincoln City men and a Cloverdale resident were charged Wednesday after Special Agents from the ATF Seattle Field Division executed multiple federal search and arrest warrants in Lincoln City.

Lincoln City ‘lockdown protesters’ on Highway 101

A group of people lined Highway 101 in Lincoln City Wednesday to display signs with different messages in protest of Governor Kate Brown's Executive Order and other actions which shut down Oregon amid the COVID-19 pandemic. 

Carjacking in Otis: Three arrested, one ‘armed and dangerous’ still at large

A Lincoln County Sheriff's Office investigation has led to the arrest of three individuals surrounding a carjacking in Otis Monday night and a fourth suspect remains at large and is considered armed and dangerous.

Lincoln City closes lodging with unanimous vote

Lincoln City will join other cities in Lincoln County who have been working to draft a joint declaration ordering lodging to close.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisements -

Trending

UPDATED: Seven Clark County men arrested for harassment in Lincoln City

Seven Clark County, Wash. men were arrested on Independence Day by Lincoln City Police for harassing a black family, launching illegal fireworks and causing a disturbance on the beach in front of Inn at Spanish Head. 

Lincoln City Police officers arrest identity theft suspects

Lincoln City Police Officer Hayden Tolzman responded to a report of possible identity theft by a male and female at the Shearwater Inn, Sunday, July 5, that led to a foot chase, taser deployment and a stolen gun.

Father and son dispute leads to attempted murder charges

Oregon State Police say a son used his truck as a weapon against his father after an altercation while driving on Independence Day, nine miles east of Waldport.

Most restaurants and bars in Oregon following COVID-19 requirements

Oregon Liquor Control Commission inspectors swept across Oregon over the Fourth of July weekend and checked 800 businesses for compliance with social distancing requirements issued by Governor Kate Brown.

Biplane soars through space and time

In the skies over Depoe Bay and Lincoln City, a modern-day barnstormer in an open-cockpit biplane is giving passengers a journey through space and time seldom found at the soulless tarmacs of modern airports.

Twin moms deliver babies 23 hours apart

Twins often have a special connection that binds them closer than most siblings, and for twin sisters Tammy and Tracy King, this connection became even tighter when they had their babies within 23 hours of each other at Samaritan North Lincoln Hospital’s Family Birthing Center.

Oregon FBI goes virtual with ‘Teen Series’

Portland's FBI field office has launched an online learning experience for students designed to let them explore the world of law enforcement.

‘Lil Wes’ is back in Lincoln City and has put cancer in remission

Wesley Allen Michael Culver said he went into shock when he got the news that he had cancer on December 12, 2019 at just 14-years-old.

DA says Clark County Seven did not commit bias crime

Seven Clark County men were recently arrested in Lincoln City for illegal fireworks, yelling racial slurs and using Nazi salutes to harass a black family on Independence Day, prompting the Lincoln County District Attorney to issue a statement about the incident.