Secure 2.0: What It Means for Your Custom(k)® Plan

The passage of Secure 2.0 means there’s never been a better time to open a 401(k) plan for your small business. Combining the new law’s benefits with our affordable, flat fees¹ is a double win for small businesses like yours and your employees. We’ve created this quick guide of Secure 2.0 highlights to help you maximize your Secure 2.0 benefits.

We’re so glad you’re taking advantage of the features in the Custom(k) plan, the most popular plan we offer. But – good news! The passage of Secure 2.0 has created even more retirement options for you and for your employees. Combining the new law’s benefits with our affordable, flat fees1 is a double win for small businesses like yours and your employees. We’ve created this quick guide of Secure 2.0 highlights to help you maximize the benefits of your Reserve(k) plan

3 Biggest Benefits for Small Businesses

  1. Three years of tax credits that fully pay for new 401(k) setup and admin fees. Your small business with up to 50 employees can now get a credit of up to 100% of plan expenses (not to exceed $5,000 annually). Over 3 years, this credit could be worth $15,000!
  2. Automatic enrollment credit of $500 per year to employers whose plans have automatic enrollment. Credit is applied each year for the first 3 years of the plan. With Secure 2.0, certain plans will be required to have auto-enrollment, and starting in 2025, auto-enrollment will be required universally.
  3. Employer match credit granted to small business employer matching contributions to an employee’s 401(k), up to $1,000 of credit per employee per year.

Secure 2.0 delivers additional retirement plan benefits for small business owners. Read on for more detailed information.

Tax Credit for New 401(k) Plan Setup & Admin Fees

How it Benefits You

How Ubiquity Helps You

  • Government tax credit
  • Applicable to plan setup and admin fees
  • Attract and retain employees
  • Quick + easy download of fee schedule
  • Since tax credits offset plan costs, you could upgrade to a Reserve(k) plan, which offers more advanced provisions

Learn more...

Expanded Automatic Enrollment Requirement for New Plans

How it Benefits You

How Ubiquity Helps You

  • Takes admin work off your plate
  • Enables employees to save more for their future
  • Auto-enrollment capabilities built in

Learn more...

Employer Match Credit

How it Benefits You

How Ubiquity Helps You

  • Making contributions is easy and cheap
  • Improved morale and loyalty
  • Our proprietary Paradigm RKS® platform empowers you to quickly and easily set up ongoing contributions with just a few clicks.

Learn more...

Increased Savings for Older Americans

How it Benefits You

How Ubiquity Helps You

  • More time for compound interest to grow on the principal
  • Simple + easy RMD process

Learn more...

Long-Term, Part-Time Employee 401(k) Eligibility

How it Benefits You

How Ubiquity Helps You

  • Increase part-time employee loyalty and morale
  • Improve part-time employee retention
  • Our flexible Paradigm RKS® platform enables seamless enrollment

Learn more...

Save More, Save Longer

Secure 2.0 also includes several other changes that enable savers to put away more money for a longer period. This helps when it comes to compound interest. When you invest in a 401(k), the money you add generates interest. This interest compounds year after year, as you earn interest on your interest.

Compounding Interest

Let’s assume a very modest ability to save and a so-so economy returning just 5%. If you put in $5,000 this month and contribute just $100/month to your 401(k), in 30 years’ time you could have $105,924 saved for retirement.

On the other hand, say you put in the maximum of $66,000 today and contribute at least that much every year for 30 years. You’d be sitting on $4.2 million or more for retirement.

Look to the Future: Savers Match

Effective in 2027:

How it Benefits You

How Ubiquity Helps You

  • Build employee loyalty
  • Stay competitive in the hiring market
  • The Ubiquity platform’s unique flexibility enables savers to participate at all levels.

Learn more...

Simple, Affordable Retirement Plans for Small Businesses

Ubiquity is the #1-ranked² 401(k) provider for small and medium-sized businesses on Google Reviews³.

Our low-fee, customizable 401(k) retirement plans for small businesses can help you take full advantage of Secure 2.0 provisions and help you grow your business.

Illustration number one ranked

Talk with us today about upgrading to a Reserve(k)® Plan.

Call 866.634.6116.

¹Flat fees are charged by Decimal, Inc. for recordkeeping and administrative services. Third-party service providers may assess asset-based fees to customers. Plan Sponsors are advised to review all service agreements with providers (e.g., investment advisors, custodians, broker-dealers) to evaluate total plan costs.

²An evaluation has been conducted by Decimal, Inc. through its research of independent customer reviews on Google, Trustpilot, and the Better Business Bureau as reported by unaffiliated contributors on or before September 30, 2022, with a revaluation date on January 12, 2023, resulting in a better evaluation, for four similar small-business 401(k) providers in the marketplace.

³Google ratings are based on client reviews of Ubiquity Retirement + Savings products and services. Details on the methodology Google employs to calculate ratings can be found here. Rates currently displayed are as of January 12, 2023 and are based on reviews from 2014 through 2023.

Ubiquity is not a registered investment advisor and no portion of the material herein should be construed as legal or tax advice. Please consult with your financial planner, attorney and/or tax advisor for advice.

© 2023 Ubiquity Retirement + Savings
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Do not sell my info
44 Montgomery Street, Suite 300
San Francisco, CA 94104
Support: 855.401.4357

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© 2023 Ubiquity Retirement + Savings
Privacy Policy
Do not sell my info
44 Montgomery Street, Suite 300
San Francisco, CA 94104
Support: 855.401.4357

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