For many small business owners, offering a 401(k) plan has historically felt expensive, complex, or out of reach. That perception is outdated and now businesses of any size can afford a 401(k) plan.

Thanks to SECURE Act tax credits, small businesses can now offset a significant portion or all of the cost of starting a retirement plan — in some cases reducing expenses by tens of thousands of dollars over the first three years. These incentives have made 401(k) plans more accessible than ever, while delivering meaningful benefits to both business owners and employees.

How the SECURE Act Tax Credits Work

If your business has 100 or fewer employees, you may be eligible for valuable federal tax credits when starting a new 401(k) plan:

• Up to $5,000 per year for the first three years to help cover startup and administrative costs
• An additional $500 annual tax credit for including automatic enrollment
• Up to $1,000 tax credit per employee for matching

Why a 401(k) Is More Than Just a Tax Benefit

While the tax credits grab attention, the long-term value of a 401(k) plan goes well beyond the initial incentive.

For small business owners, a well-designed plan can:

• Help attract and retain quality employees without raising base salaries
• Improve employee morale, engagement, and loyalty
• Allow owners and key employees to save more for their own retirement
• Enhance total compensation without increasing payroll taxes

For employees, a 401(k) plan can:

• Provide automatic saving discipline through payroll contributions
• Offer potential employer contributions, which effectively increase compensation and encourage saving
• Give access to professional investment options tailored to different risk tolerances and time horizons
• Help employees start saving for retirement today and reduce financial stress

Why Acting Now Matters

SECURE Act incentives are designed to encourage early adoption. Acting now allows business owners to maximize tax credits, meet evolving employee expectations, and create scalable long-term benefits.

How Opal Advisors Supports Small Business Owners

At Opal Advisors, we guide small businesses through every stage of the 401(k) process — from plan design to ongoing oversight. Our goal is to simplify complexity and help you take full advantage of available incentives. You can contact justin@opaladvisors.com to learn more about how to implement a 401(k) plan for your company.

Disclosures

Fees shown are estimates for illustrative purposes only. Actual plan costs vary based on plan design, service providers, and participant count. Certain fees may be paid by the plan sponsor or deducted from the participant accounts.

Tax credits described are based on current federal law and are subject to eligibility requirements and change. Opal Advisors does not provide tax advice. Employers should consult their tax professional to determine eligibility and applicability. Opal does not provide legal or ERISA fiduciary advice. Plan sponsors retain responsibility for selecting and monitoring plan service providers and investments.

Opal Advisors, LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Please refer to our Form ADV Part 2A and Form CRS for additional information about our services, fees, and conflicts of interests.