Advisor meets with client to discuss financial planning

Act now and secure your employees’ future with a 401(k) plan

Do you own a business? Do you live in a state that mandates retirement plans? According to Leading Retirement Solutions [1] as of 2022, several states have passed laws mandating retirement programs, implemented such programs or scheduled implementation of these programs, including:

  • California
  • Colorado
  • Connecticut
  • Delaware
  • Hawaii
  • Illinois
  • Maine
  • Maryland
  • Massachusetts
  • New Jersey
  • New Mexico
  • New York
  • Oregon
  • Vermont
  • Virginia
  • Washington

While requirements vary by state, employers are not required to use the plan offered by their respective state. However, employers must offer a comparable plan and, in some cases, auto enroll employees. So, employers living in the above states are required to provide a plan, but really, all business owners should consider the advantages of offering a retirement plan.


Retirement plans are a key element to providing a comprehensive benefits package. They are designed to secure your employees’ financial futures while contributing to your business’ appeal and long-term success. Offering a 401(k) plan can help you attract and retain employees. Not only will you stand out in the job market, but you’ll attract employees that value financial security. You’ll also foster a culture of financial responsibility and empower your employees to take control of their retirement savings.

In addition, there are exclusive benefits for companies that are starting a new plan. If you are establishing a new plan, and you had 50 or fewer employees in the preceding year, your company may receive a three-year tax credit to offset 100% of the start-up costs with a potential maximum credit of $5,000 per year. An additional five-year tax credit for providing employer contributions would also allow you to earn up to $1,000 for each employee making less than $100,000. This credit starts at 100% for years one and two and then decreases by 25% each year. After the fifth year, there is no longer a tax credit.

How do I get started?

Baker Tilly works with businesses that need to set up a new retirement plan or want to transfer their existing plan. Our specialists will provide you with a custom retirement plan that meets the unique needs of your business and employees. Once we’ve selected and designed the right plan for you, we will guide you through the implementation and provide all related plan documentation. Documentation includes summary plan descriptions, enrollment and administrative forms and other related materials. If appropriate, we can also prepare any necessary IRS determination letter applications. From there, our specialists can serve as your Third-Party Administrator to ensure compliance with the IRS and Department of Labor rules and requirements. And, our Baker Tilly Wealth Management advisors will act as your fiduciary providing investment consulting. Our ultimate goal is to maximize the success for your plan and your participants.

 Contact us to get started today

Baker Tilly Wealth Management, LLC (BTWM) is a registered investment advisor. BTWM does not provide tax or legal advice. BTWM is not an attorney. Estate planning can involve a complex web of tax rules and regulations. Consider consulting a tax or legal professional about your particular circumstances before implementing any tax or legal strategy. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought.

Insurance products and services are offered through Baker Tilly Vantagen. BTWM and Baker Tilly Vantagen, LLC are controlled by Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. ©2024 Baker Tilly Wealth Management, LLC

Matt Payne
Senior Advisor, Wealth
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