Ubiquity Retirement + Savings® Praises Passage of SECURE Act 2.0
Ubiquity Retirement + Savings® (Ubiquity), a financial technology pioneer in flat-fee small business retirement plans, is fully embracing the final passage of retirement legislation package nicknamed SECURE Act 2.0 that President Biden signed into law at the end of 2022.
Among the legislation's provisions, Ubiquity Founder + CEO Chad Parks is most excited about the three full years of government reimbursement for new 401(k) startup and administrative fees as well as helping more part-time workers become eligible for 401(k) plan access.
"At a time when small business owners and their employees need every bit of support they can get to save for retirement, this part of SECURE Act 2.0 puts the government in a position to provide significant assistance to every small business in America. There's no more excuse as to why a small business should not open a 401(k) plan for themselves and their employees," said Parks. "I think this will have a similar impact to the financial services sector as Obamacare had to the health care sector ? it truly is transformative in the access and democratization of retirement savings opportunities."
Provisions most impactful for Ubiquity clients include:
- Three years of government tax credits for 100% of new 401(k) setup and administrative fees cumulatively worth up to $16,500 (including credits for automatic enrollment)
- Automatic enrollment requirement with up to $1,500 in tax credits over 3 years to those employers who institute automatic enrollment
- Additional tax credits for employers to offset up to $1,000 of employer matching contributions
- Savers tax credit for eligible incomes
- Part-time employees are more likely to be eligible to participate in a retirement plan sooner under certain criteria
- Higher contribution limits for Safe Harbor small business 401(k) plans
- Increased savings limits for Americans who are close to their retirement age
Andrew Meadows, Ubiquity's SVP of Brand, People & Culture, is very excited about SECURE Act 2.0's automatic enrollment requirement. "As one of the millions of Americans who were confused when I first tried to start saving for my retirement, this new automatic enrollment requirement will help millions of Americans get started saving for their retirement. As we saw in our groundbreaking documentary Broken Eggs: The Looming Retirement Crisis in America, we need to give as much help and assistance to Americans saving for retirement as possible. Enabling ordinary Americans to save for their retirement automatically is one small step to help," said Meadows.
In anticipation of small businesses taking advantage of SECURE Act 2.0's new savings and benefits opportunities, the company has ramped up hiring of support and sales staff following its record-breaking year in 2022.
About Ubiquity Retirement + Savings
Since launching Ubiquity Retirement + Savings in 1999, the company's driving force has been to provide qualified retirement plans that meet the needs of small business owners. Our mission is to empower small businesses and their employees to create a more secure financial future by leveraging technology with affordable retirement solutions and world-class customer support.
Ubiquity is a leading fintech company that is one of the first flat-fee-for-service small business plan providers in the nation. With our exclusive, best-in-class Paradigm RKStm cloud-based platform that automates recordkeeping and plan management functions, we're able to deliver an easy-to-use experience and peace of mind with zero hidden fees. The company is headquartered in San Francisco with satellite offices from coast to coast. Ubiquity serves over 10,000 American small businesses and hundreds of thousands of savers. With over $3 billion in retirement assets, Ubiquity has clients in all 50 states, delivering a transparent, flat-fee, customizable savings experience. Our tenured team are retirement experts and future-you champions!
Visit myubiquity.com to learn more.
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