Secure 2.0 and What It Means for Financial Advisors

Secure 2.0 is a double win for small businesses and employees. We’ve created this quick guide of Secure 2.0 highlights you can share with your clients to maximize their Secure 2.0 benefits.

3 Biggest Benefits for Small Businesses

3 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 tax credit of up to 100% of plan expenses (not to exceed $5,000 annually). Over 3 years, this credit could be worth $15,000.
Automatic enrollment credit of $500 per year to employers whose new 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.
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.

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

How it Benefits Your Clients

How Ubiquity Helps You

Government tax credit
Applicable to plan setup and admin fees
Attract and retain employees
Cost savings opens possibility of plan upgrade

Quick + easy download of fee schedule

Expanded Automatic Enrollment Requirement for New Plans

How it Benefits Your Clients

How Ubiquity Helps You

Reduces administrative work
Enables employees to save more for their future

Auto-enrollment capabilities built in

Employer Match Credit

How it Benefits Your Clients

How Ubiquity Helps You

Making contributions is easy + cheap
Improved employee morale + loyalty

Our proprietary Paradigm RKS® platform empowers you to quickly and easily set up ongoing contributions with just a few clicks.

Increased Savings for Older Americans

How it Benefits Your Clients

How Ubiquity Helps You

More time for compound interest to grow on the principal

Simple + easy RMD process

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

How it Benefits Your Clients

How Ubiquity Helps You

Increase part-time employee morale + retention

Our flexible Paradigm RKS® platform enables seamless enrollment

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:

Simple, Affordable Retirement Plans for Small Business

Contact Ubiquity, 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 your clients take full advantage of Secure 2.0 provisions and help you augment your service offerings.

Illustration number one ranked

Talk with us today to learn more about how Ubiquity partners with financial advisors.

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.

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