How The Secure Act Is Beneficial For Your Business

Posted on March 23, 2020 by Rick Rossignol

woman holding ipad

The Setting Every Community Up for Retirement Enhancement (SECURE) Act became law on December 20th, 2019. This bill has been designed to ultimately make retirement plans more accessible to many small business operators and part-time workers, and also allows for people entering retirement to make withdrawals from accounts later. Could your business could possibly benefit from the SECURE Act?

Small Businesses May Benefit Most


As a small business owner, your business will be the most positively impacted by the SECURE Act. As small businesses make up for the vast majority of employers in the U.S. and almost half of the employee’s makeup that working population, being able to provide retirement plans for this demographic is one of the biggest goals of the Act. Ultimately, this bill provides financial incentives for business owners of any size to provide retirement plans for their employees.


Financial Incentives for Employers


The financial incentive for employers to provide retirement plans through the SECURE Act will most likely benefit small businesses the most as well. The Act allows the small business employer tax credit of up to $5,000 per year for the first 3 years. The Act also proposes a way for companies to work together to provide plans for their employees. Multiple Employer Plans (MEPs) grant small businesses the ability to draw their resources in sync to offer retirement plans that are accessible, financially advantageous, and easily administered.


How This Improves Small Businesses


Unemployment rates are at their highest ever, however small businesses that provide retirement plans through the SECURE Act may be able to attract more potential employees. Businesses under the Act will also have more incentives for current employees to stay with their business. Employees may be more financially secure in the future through the adoption of the Act, which is a huge motivator for owners who are struggling to find or keep employees to utilize it.


Will My Employees Qualify


The SECURE Act will now allow for anyone who has worked for a business over a 12 month period. This means that part-time employers will have greater opportunities to provide retirement plans to all employees.  This also means that almost all employers who have employees who work roughly 12 or more hours per week will still be able to provide retirement benefits to those employees.


Will My Business Be Required to Participate


Implementation of the SECURE Act applies to plans adopted in the tax year beginning after December 31, 2019. If your business already has plans in place, employees have the option to opt-out of the SECURE Act and keep the current retirement plans they currently have in place.


Implementation dates for the SECURE Act are:


  • 100+ employees: June 2020
  • 50+ employees: June 2021
  • 5+ employees: June 2022




The SECURE Act can benefit small to medium-sized businesses the most. These businesses will now have a better opportunity to provide retirement plans to their employees, which will ultimately allow for better hiring incentives and overall employee retainment. The Act also improves conditions for employees nearing retirement who wish to contribute to their plan for longer.


Do you have more questions about the SECURE Act and how it affects your business? RTR Consulting has more than 20 years devoted to developing effective and efficient human resources policies, procedures, and best practices for small, start-ups, and medium-sized businesses. Contact us today for consulting on attracting and retaining quality employees.




Leave a Reply

  • (will not be published)