As new state and city requirements force small businesses to provide retirement benefits for their employees, Decisely, a retirement solutions provider, has created a service aimed at the growing market for small business retirement options.
Decisely‘s service allows small businesses to make group purchases of retirement benefits by leveraging the economy of scale. The company has a suite of IRA and 401K solutions which meet the needs of employers and employees, as well as addressing the growing state and city requirements small businesses will have to meet.
According to Decisely, when it comes to small businesses with less than 50 employees, only 20% of companies offer a retirement benefit or plan. The low rate is driven by the prohibitive cost of retirement plans which very few small businesses can afford.
The new opportunity to make retirement plans affordable is being driven by the regulatory changes President Donald Trump signed on August 31, 2018.
The executive order signed by the President is directing the Department of Labor and the Department of the Treasury to start looking into making it easier for businesses to offer multiple employer plans by leveraging their combined buying power.
In an emailed press release to Small Business Trends, Decisely CEO Kevin Dunn addresses how the regulatory changes by the administration will help this cause. Dunn says, “We are excited for potential Administration changes that will benefit even more small businesses and their employees and look forward to the role Decisely Retirement Solutions can play in empowering American employers and workers.”
Decisely Retirement Solutions
The Decisely solution has been designed so small businesses can initiate retirement plans easily and affordably.
It starts by lowering the administrative burdens which deter small businesses from even considering retirement plans. The company then minimizes the ongoing fiduciary risks and responsibilities of operating a plan.
With these parameters in place, Decisely Retirement Solutions brings together multiple, unrelated employers so they can pool their resources. This combined effort is able to deliver a cost-effective scale in 401k benefits sourcing.
All a small business has to do is sign up and adopt the plan. The compliance management and oversight are handled by Decisely and its partners.
If your small business is not ready for a 401K, Decisely Retirement Solutions provides employee-funded IRA solutions.
Benefits of Providing Retirement Plans
When you provide a retirement plan, you attract and retain quality employees. And in a tight labor market, providing this benefit goes a long way toward tipping the decision to choose your company over another one not offering a plan.
According to the IRS, it also benefits your business because employer contributions are tax-deductible and assets in the plan grow tax-free.