401(k) Plan Credit May Need a Nudge From Financial Advisors and CPAs

Why It Matters

The initiative targets a massive retirement‑savings shortfall, and effective advisor‑CPA collaboration could dramatically increase plan adoption, boosting retirement security for millions of workers.

Key Takeaways

• 41 million U.S. workers lack employer‑sponsored retirement plans
• Saver’s match credit adoption rose to 7.2% after Secure Acts
• Advisors and CPAs critical to unlocking small‑business tax credits
• Integrated Partners links CPA firms with wealth‑management referrals
• Most firms claim the credit for only one of three eligible years

Pulse Analysis

The United States faces a stark retirement‑savings gap, with roughly 41 million workers ages 18‑65 without an employer‑sponsored 401(k). President Trump’s April 30 executive order seeks to shine a spotlight on the problem by creating TrumpIRA.gov, a portal that will promote the upcoming “saver’s match” slated for 2027 under Secure Act 2.0. The order not only raises public awareness but also reaffirms the federal commitment to low‑cost, index‑based retirement vehicles, positioning the government as a catalyst for broader participation.

At the heart of the low adoption rates lies the under‑utilized tax credit for small‑business retirement plans. Although the Secure Acts expanded the credit—eliminating start‑up costs for firms with up to 50 employees and halving them for slightly larger firms—participation has only crept to 7.2% annually. Research shows that firms whose owners are highly educated or whose tax preparer is a CPA are far more likely to claim the credit, and once a CPA files for one client, uptake spreads among that CPA’s other clients. Integrated Partners, a Boston‑based hybrid RIA, is actively bridging this divide by pairing CPA firms with wealth‑management advisors through its Integrated CPA Alliance, facilitating referrals and helping advisors demonstrate the financial upside of the credit.

The broader implication is clear: without coordinated tax‑planning and advisory outreach, the generous credit will continue to sit on the table while millions miss out on retirement savings. Policymakers are urging Congress to codify the executive order’s principles, adding features like automatic enrollment and expanded matching benefits. For the financial‑services industry, the message is simple—integrate tax and wealth advice, invest in compatible technology, and educate small‑business owners. Doing so could transform the modest 7.2% adoption rate into a robust engine for retirement security across the American workforce.