Tax incentives would boost small-business retirement plans: LPL study

An overwhelming majority of small business owners likely would adopt or enhance employee retirement plans if they were provided increased tax incentives, a new survey from LPL Financial has found. Based on data and comments from 791 small businesses, defined as those with 25 to 99 employees, LPL's Small Business Retirement Savings Challenge report found that 91% of those who don't offer employees a retirement plan would be at least somewhat more likely to institute one if the current tax credit cap was increased to $5,000 and initial costs were covered. The surveyed companies cited cost and complexity as reasons they don't currently offer a plan. In addition, 86% of small employers who do offer a plan would be at least somewhat more likely to use automatic enrollment if given a $500 credit. Current Census Bureau data, cited by LPL in a release announcing the study, indicates that businesses with fewer than 500 employees account for 99.7% of employer firms in the U.S.