The number of micro 401(k) plans, with less than $5 million in assets, will grow to more than 1 million over the next decade, driven in part by state mandates and federal tax incentives, according to The Cerulli Report—U.S. Retirement Markets 2024.
“In the micro 401(k) market, there are currently over 600,000 plans, and that number will rise to over 1 million by 2029/the end of the decade, according to Cerulli’s projections,” said Elizabeth Chiffer, research analyst, Cerulli Associates. “The proliferation of state-sponsored retirement plans will be partially responsible for this increase, as state mandates will encourage many employers to choose a private sector option. In addition, SECURE 2.0 tax incentives will lessen the burden of starting up these micro plans.”
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