How to Choose a Retirement Plan Advisor for a PA Small Business

Tucker P. Nicholas

July 20, 2026

How to Choose a Retirement Plan Advisor for Your Pennsylvania Small Business

By Tucker P. Nicholas, Private Wealth Advisor at PAC Financial, Harrisburg, PA. July 20, 2026.

Key takeaways:

You do not need an advisor to start a retirement plan, but the right one typically pays for themselves through SECURE 2.0 tax credits, plan design, and fee oversight.
Ask any advisor about the startup tax credit before you hire them. Eligible PA employers with 50 or fewer employees can claim 100% of plan startup costs, up to $5,000 per year for three years, on IRS Form 8881.
Your plan's fees are not a secret. Retirement plan costs are disclosed in public Department of Labor filings, and a good advisor will walk through yours with you at no charge.

SECURE 2.0 tax credits are helping small businesses start retirement plans at a fraction of the old cost, and a lot of Pennsylvania owners are shopping for help for the first time. Here is a plain-English look at when an advisor is worth it, and how to find a good one.

Does a small business need an advisor to set up a retirement plan?

No. You can open a SIMPLE IRA through most fund companies directly, and some payroll providers bundle basic 401(k) plans. If the simplest option truly fits your situation, those options exist, and there is no shame in using them.

An advisor earns a place when the decision has real money attached. Choosing between a SIMPLE IRA and a 401(k) changes your contribution costs, your own maximum savings as the owner, and your administrative workload. Capturing the SECURE 2.0 credits requires knowing they exist and filing for them. And once a plan is running, someone should be keeping an eye on what it costs, because that rarely happens on its own.

"The most common thing I see with Central Pennsylvania owners is the assumption that they are too small for a real plan. It is usually not true. The tax credits were written for companies their size, and a lot of owners have simply never heard about them," says Tucker P. Nicholas, Private Wealth Advisor at PAC Financial in Harrisburg.

What does a retirement plan advisor do for a small business?

Four jobs. Design: matching the plan type to your headcount, cash flow, and your own retirement goals as the owner, not defaulting everyone into the same product. Credits: identifying and documenting the SECURE 2.0 startup, contribution, and auto-enrollment credits with your tax professional, claimed on IRS Form 8881. Fees: benchmarking your plan's costs against comparable plans and re-checking as you grow. Service: being the person you call when anything about the plan needs attention.

That last one is worth asking about before you hire anyone. Find out exactly who you will deal with, and who your employees will deal with. Some arrangements route every question to a national call center. Our own model is built the other way: the owner works with one advisor, the plan runs through that relationship, and when there is a question, you talk to someone who knows your plan.

How much does a retirement plan advisor cost for a small business?

It depends on plan type and size, and any advisor should explain their compensation in plain numbers before you commit: flat fee, asset-based fee, commission, or a combination. Here is something most owners never learn: if your business already has a plan, much of what it costs is sitting in a public Department of Labor filing right now. At PAC Financial, our retirement plan reviews use these public Department of Labor price tags to show you exactly what your plan costs.

"More than 1,300 retirement plans across Central Pennsylvania disclose their advisor compensation in public Department of Labor filings. Most owners haven't memorized their own, and that is understandable, because it can change from year to year. Bring yours to a review and we can usually walk through it together in about ten minutes," says Tucker P. Nicholas.

The point is not that every plan is overpriced. Plenty are fair. The point is that this market has public price tags, and it is reasonable to work with someone willing to show you yours.

What could the SECURE 2.0 credits be worth? Three examples

Per the IRS, eligible employers can claim the startup credit for three years, the contribution credit for up to five years on contributions for employees earning $100,000 or less, and the $500 auto-enrollment credit for three years. Here is what year one could look like for three example businesses:

Example business	Startup credit	Contribution credit	Auto-enroll credit	Year 1 total
10 employees, $2,000 plan costs, $1,000 contributed per eligible employee	$2,000	$8,000	$500	$10,500
25 employees, $4,000 plan costs, $500 contributed per eligible employee	$4,000	$10,000	$500	$14,500
60 employees, $6,000 plan costs, $800 contributed per eligible employee	$3,000	$28,800	$500	$32,300

Hypothetical examples for illustration only, assuming IRS eligibility requirements are met, all counted employees earned at least $5,000 in the prior year and fall under the $100,000 compensation threshold, and the employer makes the stated contributions. The contribution credit offsets contributions the employer actually makes and phases down after year two. Startup costs claimed as a credit cannot also be deducted. Source: IRS, Retirement Plans Startup Costs Tax Credit. Consult a qualified tax professional regarding your circumstances.

To claim these SECURE 2.0 credits, eligible small business owners must file IRS Form 8881 with their annual business tax return. Your tax professional handles the filing; your plan advisor's job is making sure the credits are identified and documented so nothing gets missed.

Two details worth knowing that rarely get mentioned. First, you cannot deduct the same startup costs you claim the credit on, which is exactly the kind of coordination your tax professional and plan advisor should handle together. Second, there is a separate credit of up to $500 per year for three years for small employers whose plan covers a participating military spouse. Small dollars, but if it applies to someone on your team, it belongs in the conversation.

Is Pennsylvania requiring businesses to offer retirement plans?

Not yet, and possibly not at all. You may have heard about Keystone Saves, a proposed program that would automatically enroll workers at businesses without a plan into a state-run savings option. As of this writing, that legislation is stalled in the Pennsylvania Senate. And under Pennsylvania's legislative rules, if it does not pass before the current two-year session ends this November, the bill dies and the process starts over in the House next session. So it may become law someday, or it may not.

We would rather tell you that straight than use a maybe-mandate as a sales pitch. In our view, the reasons to consider a plan now, the tax credits and the hiring advantage, stand on their own whether or not Keystone Saves ever passes. If it does pass someday, businesses that already have a plan will simply be ahead of it.

Five things to look for before you sign

1. A record you verified yourself. Look the advisor up on FINRA BrokerCheck. It is free, it takes two minutes, and it is worth doing every time.

2. The credit question. Ask what tax credits are available for starting a plan. An advisor who works in this space regularly will bring up the startup credit and Form 8881 without prompting. If the question draws a blank, that tells you something about how closely they follow it.

3. Independence. An independent advisor can build your plan across many providers and fund families, rather than steering you toward one company's product because that is what they have.

4. Plan-size honesty. A 401(k) is not automatically the answer. For many companies under 100 employees, a SIMPLE IRA delivers most of the benefit with far less administration. A good advisor explains why they are recommending one over the other.

5. A view of your whole picture. You are not just a plan sponsor. You are also the highest-stakes participant in your own plan, and your business is probably your largest asset. The best plan conversations end up covering your personal retirement too, because the two are connected.

Questions to ask in the first meeting

"SIMPLE IRA or 401(k) for a company like mine, and what does each cost me per year?"
"Which SECURE 2.0 credits do I qualify for, and what is that worth in real dollars?"
"What happens to the plan and its costs as my company grows?"
"Exactly how are you paid, and who services my employees' questions?"
"Can you also help me with my personal retirement and estate picture, or only the company plan?"

One advisor, two jobs

That last question matters more than owners expect. Your company plan and your personal finances are not separate problems. The plan you choose changes how much you personally can save. Your business value shapes your retirement. Your exit someday will likely be the biggest financial event of your life. There is a practical advantage to one advisor who sees both sides of your balance sheet, and it is a big part of how we work with business owners at PAC Financial.

Where PAC Financial fits

We are a third-generation independent firm at 5291 Devonshire Road in Harrisburg. We design and service small business retirement plans across Central Pennsylvania, help owners capture the SECURE 2.0 credits, and can add the new Trump Account employer contribution as a standout benefit. If you already have a plan, bring your latest statement and we will benchmark it, no strings attached. And if one of the simpler options genuinely fits your situation better, we will tell you that too.

Get in touch

Stephen A. Marrazzo
Financial Advisor
T: (717) 564-6400 ext 104
E: smarrazzo@osaicwealth.com

Tucker P. Nicholas
Private Wealth Advisor
T: (717) 564-6400 ext 181
E: tnicholas@osaicwealth.com