The best time to start saving for your retirement was yesterday, the second best time is NOW.
with ﬁve+ employees are required to oﬀer their employees access to a retirement plan. If your business meets that criteria, you are legally required to enact a plan of your own choosing. Neglecting to do so before the set deadlines can mean hefty ﬁnancial penalties.
DO NOT WAIT TO GET FINED!
Failure to comply within 90 days after service of notice equals a $250 ﬁne PER
If another 90 days passes, then employers would face another $500 PER eligible employee.
Deadlines vary by number of eligible employees:
- September 30, 2020: 100+ employees
- June 30, 2021: 50-99 employees
- June 30, 2022: 5-49 employees
Why should you set up a plan sooner, rather than later?
We absolutely want to avoid ﬁnes. Generally, these plans can take up to 60-90 days to implement. Procrastination could equal penalties for your business.
Also, establishing a plan before the cutoﬀ could help you take advantage of the power of compound interest, potentially saving your employees thousands for their retirement!
What are my options?
In order to help employers meet compliance, California launched CalSavers, its own IRA-based retirement program. However, there are many providers that oﬀer a variety of retirement savings plans with unique features.
The major diﬀerences between these unique features include the company match and the maximum amount employees can contribute.
The Financial Architects, we can help you ﬁnd the best ﬁt for your business !
If you’re paying high taxes, would rather pay yourself & your employees? or Uncle Sam?
When you choose a retirement plan through TFA, our brokerage will show you how you can receive valuable tax deductions through:
- Company match dollars
- Proﬁt sharing
- New plan startup costs