In an article referenced by Nadaq.com, small employers who begin sponsoring a retirement plan could receive a $1,000 tax credit for three years, under President Barack Obama's proposed budget.

Originally, the tax credit proposal was offering new plan sponsors $500 a year for three years. However, Obama’s Administration plans to double the tax credit for newly-sponsored retirement plans, beginning after Dec. 31, 2011, in an effort to encourage small employers to offer a retirement savings plan to their employees.

The increased tax credit is part of The Required IRA Proposal, which will require employers who do not offer a retirement plan to implement a direct-deposit retirement savings system for their employees to participate in beginning in 2011.

Want to take advantage of the increased tax credit and provide your employees with a cost-effective, quality retirement plan? Consider sponsoring a NADART 401(k) plan. A variety of features, including Target Dated Funds, Roth 401(k) contributions, Automatic Enrollment, as well as our Sub20 plan for small businesses, will allow you and your employees the opportunity to save for retirement. For more information about our services, contact one of our representatives today at (800) 462-3278, ext. 7161 or by e-mail at nadart401k@nada.org.