| Pennsylvania Legislation that will mandate employers to offer state-sponsored Individual Retirement Accounts is building momentum in Harrisburg. The proposed “Keystone Saves Program” would apply to ALL Pennsylvania employers with five or more employees, who have been in business at least 15 months and do not currently offer their employees a retirement plan. Although it is not certain if the Program will make its way into law, several other states have recently enacted similar programs, thus paving the way for PA to follow suit. Furthermore, we do not have a clear timetable for implementation – but it could be as early as 2026. Fortunately, the news brings a planning opportunity for small businesses – corresponding Federal tax credits are currently available for eligible employers who adopt their own retirement plans, under SECURE Act 2.0. Such credits are generally available for businesses with 50 or fewer employees and eligible expenses to claim these credits include plan startup costs and contributions to retirement accounts of certain non-highly compensated employees. In summary, we wanted to alert our clients that if employer-sponsored retirement plans will be legally mandated in the near future anyway, we are strongly encouraging employers to consider adopting their own plans to take advantage of these available credits. |
| Please contact us to discuss what retirement plans and tax credits are available to your business! |