Kathleen McNary
Director of Corporate & Member Relations
Carlsbad Chamber of Commerce
Attention all members and future members! The Carlsbad Chamber is launching another major benefit of your Chamber investment– the Carlsbad Chamber Retirement Solution. So what is this and why is it important? Most of you are aware that there have been sweeping legislative changes occurring in California and at the Federal level, many of which were put into effect on Jan. 1, 2020. Right alongside the lawmakers work, the Carlsbad Chamber is now offering a Carlsbad Chamber Retirement Solution to all its members that ties in directly to the new laws. Enjoy low costs, save management time and delegate compliance.
Starting with CalSavers which is a state mandated program with penalties for non-compliance. All employers with five or more employees will be required to participate if they do not have an exempted retirement plan, or do not adopt an exempted retirement program by certain deadlines (which vary based on the number of employees). More simply, the law forces employers with five or more employees to either have/get a 401k plan, or cooperate with Sacramento by using their State plan named “CalSavers”.
Next, the SECURE Act is a collection of ideas that have been floating around for a long time, consolidated into one act. SECURE is an acronym, Setting Every Community Up for Retirement Enhancement, and just passed on Dec. 20, 2019. This Act covers a LOT, and that’s why we are having a workshop! Come and hear from the experts, what you need to know, what is required by you and when, and how we can help make your life easier (and compliant!). The workshop is on Monday. Feb. 24 from 12:30 p.m. to 2 p.m.
HERE ARE A COUPLE HIGHLIGHTS:
- The SECURE Act increased tax credits for 401(k) start-up plans by 900%
- The Chamber is offering the newly authorized “CO-OP” style 401k plan.
- The CO-OP is huge therefore demands super low costs from the providers.
- Chamber’s CO-OP offers a “concierge” that takes on all the day-to-day, month-to-month, year-to-year administrative minutiae – including the liability.
The CO-OP style plan provides the lowest liability on plan overseers in the industry today. The best way to avoid the new stiffer penalties is to delegate compliance.
The Chamber CO-OP plan combined with a 900% increase in 401(k) start-up plan tax credits provides a superb path for small firms to get a plan in place and not deal with the Sacramento-based state-run CalSavers 401(k) plan which is very limited. We hope you can make it to the workshop!