Employee retirement plans are too complex and expensive for small business owners. Endless options, hidden fees and excessive fine print put most employee retirement savings plans out of reach for small business owners. Big companies have HR departments to manage those details, but small business owners need an option that meets their specific needs.
Retirement Security Accounts offer savings, simplicity and independence by giving participating small business owners the opportunity to offer a low-cost, easy-to-manage retirement savings plan to their employees. Under the Retirement Security Accounts proposal for Seattle proposal, employers could choose between two City of Seattle approved plans: a SIMPLE IRA that allows employers to contribute to their workers’ accounts, or a Payroll Deduction IRA for worker contributions only.
If authorized by the Seattle City Council, RSAs will help small business owners:
- Save money and time: The City will negotiate with a financial services provider for an easy-to-manage, low-cost plan that offers the lowest possible fees.
- Keep it simple: The City will reduce complexity by ensuring a limited number of high-quality investment funds are available.
- Stay independent: RSAs would be a new option designed specifically for the needs of small businesses. Participation will be completely voluntary.
Benefits for small businesses, workers, and our community.
- Small businesses will find it easier to offer retirement plans to their employees – helping save time and money, and attract and retain quality staff.
- Workers can look forward to a more secure retirement, thanks to an easy-to-manage retirement savings plan that’s portable from job to job.
- Additional retirement savings and a higher standard of living for retirees will boost the local economy and reduces demand for public services, making Seattle a better place to live for everyone.