Small Business Retirement Plans: Strategies for Success

Small Business Retirement Plans: Strategies for Success

Small Business Retirement Plans

In today’s dynamic business landscape, small business retirement plans are more than just an add-on; they are an investment in the future well-being of your employees and your business. Additionally, small business retirement plans are increasing in popularity due to new state regulations and the availability of affordable and easy-to-administer options. This increased popularity in small business retirement plans could not come at a better time since half of retirees surveyed say they do not have retirement savings.

So, what’s holding back small businesses from implementing these important retirement plans?

Offering a retirement benefit for their workers is a perennial challenge for small businesses due to cost and time. Many small businesses struggle at the administrative complexities and significant resources needed to set up and manage a retirement plan, not to mention the hefty price tags that traditional retirement plans come with. This challenge results in two-thirds of small businesses not offering their employees a retirement plan, leaving millions of Americans financially unprepared for retirement.

Our whitepaper, Empowering Small Businesses: Strategies for Cost-Effective and Easy-to-Manage Retirement Plans presents a treasure trove of information, insights, and actionable steps for small businesses. It outlines existing challenges, provides a clear view of state-mandated regulations and tax credits, offers viable retirement plan solutions, and even offers a comprehensive guide on hiring a reliable retirement plan administrator.

Table of Contents

1. Introduction
2. Obstacles to small business retirement plans
3. Unraveling state mandates for retirement plans
4. Small business retirement plan options
5. Navia’s small business retirement plan solutions
6. Take advantage of the Secure 2.0 tax credits
7. Questions to ask when evaluating a retirement plan administrator
8. FAQs

Here’s a sneak peak at what’s in the whitepaper:


As a small business owner, CFO, or Human Resources professional, you hold the key to unlocking a brighter tomorrow for your employees. Small businesses are often faced with challenges when adding retirement benefit plans. Navia outlines actionable solutions for companies so they can pave the path to financial security for their employees.

Obstacles to Small Business Retirement Plans

The primary challenges hindering small businesses from implementing retirement plans are cost and time. Currently, only 34% of small businesses offer retirement plans, leaving a significant portion of the workforce unprepared for retirement.

Unraveling State Mandates for Retirement Plans

Some states are mandating businesses offer retirement plans to improve the retirement gap. The rationale behind these mandates is to enhance worker access to retirement plans and reduce reliance on social welfare programs. Find out if your state mandates a retirement plan.

Small Business Retirement Plan Options

Retirement plans can vary in design and are limited by parameters set by the government. Payroll Deduction IRA, Safe Harbor 401(K) Plan, and Safe Harbor 401(K) Plan with profit sharing, among others. Each plan’s features and benefits, such as affordability and ease of setup, are evaluated to assist small business owners in making informed decisions.

Affordable Small Business Retirement Plan Solutions from Navia

Navia has developed cost-effective, easy-to-implement retirement plan solutions for small businesses. Their Safe Harbor Plan and Starter 401(K) Plan incorporate features like annual contribution limits and payroll integration, ensuring seamless retirement benefits for smaller companies. For detailed information about our Small Business Retirement Plans, download our guide or visit our Retirement and Wealth Solutions product page.

Taking Advantage of the Secure 2.0 Act Tax Credits

Small businesses are incentivized by the new Secure 2.0 Act, which increases tax benefits to companies that offer a retirement plan for the first time. It details various tax credits available to eligible businesses and provides an example of estimated tax credit savings for a small business.

Questions to ask when evaluating a retirement plan administrator

When evaluating potential retirement plan admin, asking the right questions can help you determine if they are a good fit for your needs. We’ve assembled over 25 questions to ask when vetting a new retirement plan administrator. Download the guide to see the questions.

Company-supported retirement plans are crucial for ensuring a comfortable retirement for employees. Small business owners are encouraged to leverage affordable retirement plan options and tax incentives to provide their employees with financial security.

Small Business Retirement Plans


1. What are the benefits of offering a 401(K) plan to employees?

Offering a 401(K) plan to employees can lead to increased employee satisfaction and retention, a competitive edge in recruiting top talent, and potential tax benefits for the business. It also promotes a culture of financial wellness within the workplace.

2. How do state mandates for retirement plans impact small businesses?

State mandates aim to increase worker access to retirement plans, reduce reliance on social welfare programs, and boost the economy by promoting retirement savings among employees.

3. What retirement plan options are available for small businesses?

Small businesses choose from options such as Payroll Deduction IRA, Safe Harbor 401(K) Plan, and Safe Harbor 401(K) Plan with profit sharing, among others.

4. What is a Safe Harbor 401(K) Plan?

A Safe Harbor 401(K) Plan is a type of retirement plan that automatically meets the IRS nondiscrimination requirements, simplifying administration. This plan often involves mandatory employer contributions, which can be either matching or non-elective, making it a popular choice for small businesses.

5. How can small businesses take advantage of tax credits for offering retirement plans?

The Secure 2.0 Act provides tax credits to eligible businesses that offer retirement plans, helping to offset administrative costs and encourage retirement savings among employees.

6. What is the difference between a traditional 401(K) plan and a Starter 401(K) plan?

A Starter 401(K) plan is designed for smaller businesses or startups with fewer administrative requirements and lower costs compared to traditional 401(K) plans. It offers the basic framework of a 401(K) plan, allowing businesses to provide retirement benefits without the complexity of a traditional plan.

7. How does a Payroll Deduction IRA differ from a 401(K) plan?

A Payroll Deduction IRA is typically easier and less expensive to set up than a 401(K) plan, making it suitable for smaller businesses. Contributions are made through payroll deductions, but there are no employer matching contributions, unlike many 401(K) plans which often include employer contributions.