Most small firms unclear on new retirement law.
Position | Business Brief - Economic Growth and Tax Relief Reconciliation Act - Brief Article |
More than two-thirds of small businesses offering retirement plans are not familiar with the new Economic Growth and Tax Relief and Reconciliation Act (EGTRRA), according to a recent survey by the Principal Financial Group. The law, passed last year, provides increased retirement plan incentives.
Principal's 2002 Small Employer Retirement Survey did identify 10 firms the company believes are doing an exemplary job of providing retirement plans in sync with the new law's provisions. All of the companies are aware of EGTRRA and have communicated the new tax law's retirement savings opportunities to their employees. Many have already made changes to their plans in order to comply with the new law.
The select group of companies ranges in size from 22 to 460 employees. "Smaller companies can be leaders in selecting, managing and providing a benefits program that works for all employees, as well as teaching employees how to maximize those benefits offerings," says Carey Jury, a vice president at the Principal. "Each uses multiple benefits communications methods, and some are very innovative in how they get messages across to their...
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