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New Choices for doesn’t apply, as these contributions aren’t allowed, and
since start-up costs are low, the tax credit for these costs
Business Owners will be correspondingly lower than they’d be for a full-
scale 401(k) plan.
Submitted by Ann Jacobs, Financial
• Matches for student loan payments – It’s not easy for
Advisor, Edward Jones - Denton
young employees to save for retirement and pay back
410-479-0271
student loans. To help address this problem, Congress
included a provision in Secure 2.0 that allows employ-

If you own a business and you offer a 401(k) or similar retire- ers the option to provide matching contributions to
ment plan to your employees, you’ll want to stay current on the employees’ retirement plans (401(k), 403(b), 457(b)

various changes affecting these types of accounts. And in 2024, and SIMPLE IRAs) when these employees make quali-

you may find some interesting new developments to consider. fied student loan payments. Of course, if you off er this

match for student loan payments, your costs will likely

These changes are part of the SECURE 2.0 Act, enacted at the
increase, although these matching contributions are tax
end of 2022. And while some parts of the law went into eff ect in
deductible. In any case, you may want to balance any
2023 — such as the new tax credit for employer contributions
additional expense with the potential benefit of attract-

to start-up retirement plans with 100 or fewer employees —
ing and retaining employees, particularly those who
others were only enacted this year.
have recently graduated from college.
Here are some of these changes that may interest you:
• 401(k) eligibility for part-time employees – Part-time
• New “starter” 401(k)/403(b) – If you haven’t already employees who are at least 21 years old and have at
established a retirement plan, you can now off er a least 500 hours of service in three consecutive years
“starter” 401(k) or “safe harbor” 403(b) plan to employ- must now be eligible to contribute to an existing 401(k)
ees who meet age and service requirements. Th ese plan. The inclusion of part-time employees could lead

plans have lower contribution limits ($6,000 per year, to higher business expenses for you, depending on the
or $7,000 for those 50 or older) than a typical 401(k) or amount of contributions you may make to employees’
403(b) and employers can’t make matching or nonelec- plans. Again, though, you’d be offering a benefi t that

tive contributions. These plans are low-cost and easy could be attractive to quality part-time employees.

to administer but the credit for employer contributions
• Emergency savings account – Many people, especially
those who don’t earn high incomes, have trouble build-
ing up emergency funds they can tap for unexpected
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costs, such as a major home or car repair or large

medical expenses. Now, if you offer a 401(k), 403(b) or
Compare our CD Rates 457(b) plan, you can include a pension-linked emer-
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Bank-issued, FDIC-insured
compensated employees to save up to $2,500, a fi gure
Minimum deposit

NPT . % APY* $1000 that will be indexed for inflation in the future. PLESA
allows for tax-free monthly withdrawals without incur-
on an after-tax (Roth) basis and must be matched at the
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.
-NPT $1000
You may want to consult with your tax and fi nancial profes-
Call or visit your local financial advisor today.

sionals to determine how these changes may affect what you
Ann M Jacobs, AAMS® want to do with your retirement plan. The more you know, the

Financial Advisor
better your decisions likely will be.
105 Franklin St
Denton, MD 21629-1207

410-479-0271 This article was written by Edward Jones for use by your local
Edward Jones Financial Advisor. Edward Jones, Member SIPC
* Annual Percentage Yield (APY) effective 4/19/2024. CDs offered by Edward Jones are bank

issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid) per
depositor, per insured depository institution, for each account ownership category. Please
visit www.fdic.gov or contact your financial advisor for additional information. Subject to

availability and price change. CD values are subject to interest rate risk such that when
interest rates rise, the prices of CDs can decrease. If CDs are sold prior to maturity, the
investor can lose principal value. FDIC insurance does not cover losses in market value. Early
withdrawal may not be permitted. Yields quoted are net of all commissions. CDs require
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