ESCA Applauds White House Focus on Retirement Security

For Immediate Release:

August 31, 2018

Home News ESCA Applauds White House Focus on Retirement Security

Washington, D.C. – Employee-Owned S Corporations of America released the following statement today after the President signed an executive order to encourage multiple employer 401(k) retirement plans, or Association Retirement Plans, aimed at helping employees of small businesses and asking the Department of Treasury to review the mandatory withdrawal rules so Americans would not have to start withdrawing funds from retirement accounts at age 70-and-a-half.

“At a time when too many hard-working Americans are struggling to save enough for retirement, we applaud the Administration for making financial security a priority. Saving adequately for retirement can be confusing and difficult, but empowering businesses to provide more retirement savings options to their employees is a big step in the right direction. Another excellent way to boost Americans’ retirement security is to encourage businesses to implement employee stock ownership plans, or ESOPs, which provide retirement savings along with other proven benefits of employee ownership such as enhanced productivity and decreased turnover. In fact, employee-owners at S corporation ESOPs accrue more than twice the retirement savings than employees at non-ESOP companies. By encouraging more businesses to explore creating an ESOP, we can make big strides toward better financial security for all our country’s workers.”

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