For many small and mid-sized businesses, offering a retirement plan has long been viewed as a valuable but costly benefit. Administrative fees, compliance requirements, and ongoing management responsibilities have often made it difficult for smaller organizations to justify the investment.

However, recent changes under the SECURE 2.0 Act are changing that equation — creating new opportunities for businesses to offer retirement plans with significantly reduced upfront costs.

What Is Changing Under SECURE 2.0?

The SECURE 2.0 Act builds on previous retirement legislation by expanding incentives for employers to establish retirement plans, particularly those with fewer employees.

One of the most impactful updates is the availability of tax credits that can offset administrative costs for new retirement plans.

For eligible small businesses, the federal government may cover a substantial portion of plan startup and administrative expenses for the first three years.

How the Cost Savings Work

Under SECURE 2.0, qualifying employers may be eligible for:

• Tax credits to cover 100% of administrative startup costs for up to three years
• Additional credits tied to employer contributions (in some cases)
• Incentives designed to reduce the financial barrier to offering a retirement plan

These changes are designed to encourage more businesses to provide retirement benefits without taking on the full cost burden upfront.

Why This Matters for Small Businesses

For many organizations, this shift removes one of the biggest obstacles to offering a retirement plan: cost.

With administrative expenses partially or fully offset in the early years, businesses can:

• Offer competitive benefits to attract and retain talent
• Support employees’ long-term financial well-being
• Strengthen overall compensation packages
• Position themselves more competitively in the labor market

At the same time, employers should still consider long-term costs, compliance requirements, and plan design when evaluating their options.

Beyond Cost: The Strategic Opportunity

Retirement benefits are increasingly expected by employees and can play a key role in engagement and retention.

The SECURE 2.0 Act creates a window of opportunity for businesses that may have delayed offering a plan due to cost concerns.

Organizations that act now can take advantage of available incentives while building a stronger benefits foundation for the future.

How FullHR Helps Employers Navigate Retirement Planning

While these incentives make it easier to get started, choosing the right retirement plan — and maintaining compliance — still requires careful planning.

FullHR works with businesses to:

• Evaluate retirement plan options based on company size and goals
• Understand eligibility for SECURE 2.0 tax credits
• Manage administrative and compliance requirements
• Align retirement benefits with overall HR and compensation strategy

Take Advantage of the Opportunity

The SECURE 2.0 Act has created a unique opportunity for small businesses to offer retirement plans with reduced financial risk in the early years.

Do not wait until costs increase or requirements change. Now is the time to evaluate whether a retirement plan makes sense for your organization.

Contact FullHR today to learn how you can take advantage of available incentives and build a retirement strategy that supports both your business and your employees.