Small businesses can finally offer 401(k)s without running their own plan

The US Labor Department is offering guidance to help small businesses join "pooled employer plans" for retirement savings. This means small businesses can offer 401(k)s without the administrative burden and cost of setting up their own plan.

For decades, small businesses struggled to offer competitive retirement benefits because the administrative costs were too high. This guidance makes it easier for them to join larger, professionally managed plans. This could significantly increase the number of workers with access to employer-sponsored retirement savings, especially in sectors dominated by small businesses.