What's Happening?
Recent research from Gusto indicates a significant increase in small businesses offering retirement plans, rising from fewer than one in five to nearly one in three between 2019 and 2025. This growth is driven by state retirement mandates in over 20 states
and the SECURE 2.0 Act, which provides tax credits to offset plan startup costs. Accountants are encouraged to leverage their advisory roles to help small businesses navigate these changes, as compliance requirements become more visible and penalties for noncompliance are enforced.
Why It's Important?
The expansion of retirement plans among small businesses represents a shift in the retirement system, offering accountants a unique advisory opportunity. As businesses face compliance mandates and tax incentives, accountants can strengthen client relationships and expand services by guiding them through retirement plan decisions. This shift also impacts employee participation, with sectors like hospitality and agriculture seeing significant growth in retirement plan offerings.
What's Next?
Accountants can lead the retirement conversation by leveraging their trusted advisor relationships, integrating tax expertise, and utilizing payroll data to identify clients who may benefit from offering a plan. Building referral relationships allows accountants to guide clients through decisions and connect them with implementation partners, enhancing their advisory role in the evolving retirement landscape.
