New Opportunities
We would like to point out major legislative changes at the state and federal levels that will have notable implications for local companies:
- The State of Hawaii will soon be mandating that companies that do not have their own
retirement plan must join the State’s plan. - The federal government has created significant tax incentives for starting a retirement
plan if an employer has not sponsored a plan within the last 3 years.
"Hawaii Saves"
Hawaii has passed legislation which will establish a state managed retirement plan. All employers with at least one employee who do not sponsor a private retirement plan will be required to register with the state plan. It will be a mandatory Roth IRA that employers must offer and administer on behalf of their employees. Originally anticipated to take effect during 2024, at this time, we are awaiting further details about the program’s implementation.
“Federal Tax Credits for New Plans”
Effective for tax years beginning in 2023, employers can qualify for tax credits of up to 100% of new plan start-up costs. In addition, there are favorable tax credits for employer contributions made to a new retirement plan. These credits are available for the first 5 years from plan establishment, and are phased out gradually over the 5 year period.
Now is the time to explore your options. Starting a retirement plan has never been more affordable for small businesses. Contact us for more information.
Ready to start the conversation?