If You Had a Million Dollars…

If You Had a Million Dollars…

Only 14 percent of women-owned small businesses offer employees some sort of retirement plan. Luckily, that may be about to change.

Enter the SAVE Act, which is currently awaiting approval from Congress.

“The SAVE Act’s main headline is removing barriers keeping small businesses from offering employees retirement plans,” says Anne Arvia, president of Nationwide Retirement Plans.

It allows more small businesses to offer Multiple Small Employer Plans (MSEP), which are less expensive than single employer plans.

“Since 401(k)s are considered expensive, the SAVE Act creates a concept of

incentives for small businesses that pool their resources.”

Offering 401(k)s generally costs employers a few hundred to a few thousand dollars. Those who use MSEPs can save on audit and record-keeping costs, explains Arvia.

Still don’t think you can swing it? “There is the perception out there that businesses have to match employee’s [retirement fund] contributions, but this is not required. That makes it much more affordable,” Arvia says.

Don’t know whether you should offer a solo plan, employee pension plan or something else? The Employee Benefits Research Institute and American Century Investments help identify the option that works best for you.

Small businesses are competing with larger ones to attract top talent, and thus “need to provide additional benefits,” she adds.

Bonus PINK Link: Find out how (and why) to tap fully into SEO in our two-part online exclusive.

Minute Mentor: Melanie Rembrandt of Rembrandt Communications LLC discusses important SEO tips for women owners.

By S. Sam Higgins

“Economics are the method; the object is to change the heart and soul.”
Margaret Thatcher

*Supporting images from FreeDigitalPhotos.net, Ambro.