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Retirement planning just got a major overhaul, and dental practice owners need to take note. With the passage of the SECURE 2.0 Act, new regulations will soon require automatic enrollment in 401(k) and 403(b) plans for many businesses, including dental practices. Understanding these new rules, the penalties for non-compliance, and the available exemptions is crucial for ensuring compliance and optimizing retirement benefits for both you and your employees.
Starting January 1, 2025, most new 401(k) and 403(b) plans must include an automatic enrollment feature for eligible employees unless they opt out. Here’s how it works:
These changes aim to enhance employee participation in retirement savings and ensure that more workers are financially prepared for their future.
(Reference: IRS.gov)
Failing to comply with the automatic enrollment mandate can have serious consequences. While exact penalties are not yet fully outlined, non-compliance could result in the disqualification of the retirement plan from its tax-advantaged status. This would lead to significant tax liabilities for both the employer and employees.
Ensuring compliance with these new provisions is crucial to maintaining a qualified retirement plan and avoiding unexpected financial burdens.
(Reference: IRS.gov)
Not all businesses are subject to the new automatic enrollment rules. The following groups are exempt:
(Reference: IRS.gov)
With the January 1, 2025, deadline approaching, now is the time for dental practice owners to take action:
At PracticeCFO, we specialize in helping dental practice owners navigate the complexities of retirement planning. Whether you need assistance setting up a new 401(k) or ensuring compliance with the new SECURE 2.0 regulations, we’re here to help.
Have questions about how these new rules affect your practice? Contact us today!
The SECURE 2.0 Act is reshaping retirement planning, making it essential for dental practice owners to stay informed and prepared. Automatic enrollment can be a powerful tool for increasing employee participation, but understanding the rules, penalties, and exemptions will be key to successfully implementing these changes.
Stay ahead of the curve and ensure your practice is compliant. Reach out to PracticeCFO today to explore your options and secure a financially stable future for you and your employees.
Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.
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