Q: Erick, with the positive trajectory of state-run IRA programs over the past few years and new tax incentives provided by SECURE 2.0 for starting a 401(k) plan, what is the potential for the retirement plan industry?
A: Recent research from Cerulli Associates forecasts nearly 40% growth in the number of 401(k) plans by 2030, primarily based on the federal and state efforts that you mention. That translates to one million new plans. By comparison, Cerulli has estimated there were 668,419 total 401(k) plans as of the end of 2022. This is great news for the retirement plan industry, as the Boston College Center for Retirement Research statistics estimates that about 33% to 50% of private sector workers are not currently covered by a workplace retirement plan.
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Disclosures, Sources, and Footnotes
For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
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©2024 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance; nor as the sole authority on any regulation, law or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
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