New Opportunities
Two major legislative changes affecting local companies:
- Hawaii will mandate that companies without retirement plans join the State's plan
- Federal government offers significant tax incentives for new retirement plan establishment
Hawaii Saves
Hawaii enacted legislation establishing a state-managed retirement plan. Employers with at least one employee who don't sponsor private retirement plans must register with this state plan. It will function as a mandatory Roth IRA that employers must offer and administer for employees. Originally expected in 2024, implementation details are still pending.
Federal Tax Credits for New Plans
Starting in tax year 2023, employers can qualify for tax credits of up to 100% of new plan start-up costs. Additional favorable credits apply to employer contributions to new plans, available for five years from establishment with gradual phase-out.
Now is the time to explore your options
Starting a retirement plan has never been more affordable for small businesses.
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