The passage of the Secure Act 2.0 marked a major turning point in retirement policy. Across the country, small and midsize businesses now have expanded opportunities—and stronger incentives—to offer retirement savings plans to their employees. While several states like California, Oregon, and Illinois have enacted mandates requiring employers to provide retirement options, Ohio has not.
For midsize construction firms in Columbus, this absence of a state requirement is a double-edged sword. On one hand, there’s no compliance burden. On the other, there’s no built-in incentive to act—unless firms recognize the competitive edge a retirement plan can create.
The construction industry in Columbus is booming, but also facing a tight labor market. Skilled workers have more choices than ever, and retention is one of the biggest challenges employers face. In a city where cranes fill the skyline and projects stretch from downtown high-rises to suburban developments, standing out as an employer of choice is essential.
That’s where Secure Act 2.0 comes in. Even without a state mandate, offering a 401(k) can help Columbus construction firms retain top talent and position themselves as forward-thinking employers in an industry where loyalty is often fleeting.
The Secure Act 2.0
The Secure Act 2.0 introduced several provisions designed to strengthen workplace retirement plans:
- Tax Credits for Small Businesses: Employers with fewer than 100 workers can qualify for credits covering up to 100% of plan startup costs.
- Automatic Enrollment: Starting in 2025, new plans will be required to automatically enroll employees, making participation the default.
- Catch-Up Contributions: Workers aged 60–63 can make larger annual contributions, helping late-career employees boost savings.
For employers in Columbus, these changes create a unique opportunity. While Ohio doesn’t require retirement benefits, construction firms can use Secure Act 2.0 to differentiate themselves.
The retention data tells the story clearly:
- 78% of employees are more likely to stay with employers offering strong benefits programs (UnitedInsurance).
- Employees at small and midsize businesses are 40% less likely to leave within the first year when offered retirement benefits (Coast General Insurance).
- Compensation and benefits together account for nearly 30% of preventable turnover actions (Gallup).
For midsize construction firms, where losing one foreman or skilled tradesperson can stall an entire project, these numbers aren’t abstract—they’re bottom-line realities.
The Process
There is a process of designing retirement benefits that don’t just check a compliance box, but actually strengthen their workforce. Here’s how:
- Discovery – We begin by understanding your workforce demographics, turnover rates, and long-term business goals. For construction firms, this means analyzing the mix of skilled trades, supervisors, and administrative staff.
- Audit – Our team conducts a benchmarking audit using publicly available Form 5500 filings. This allows us to compare your benefits package against peer employers in your industry and size. If other Columbus construction firms are offering competitive matches or auto-enrollment, we’ll identify where you stand—and what it takes to lead.
- Strategy Design – Based on the audit, we craft a tailored plan. This may include a Safe Harbor 401(k) for simplicity and compliance, or adding auto-enrollment to boost participation.
- Implementation – We manage the plan setup, coordinate with recordkeepers, and provide employee education sessions so staff understand the value of the benefit.
- Monitoring – Ongoing compliance checks, plan performance reviews, and market updates ensure the benefit remains competitive and cost-efficient.
Tools Used: Wealth Axle advisory platform, benchmarking audits, plan design software, and Secure Act 2.0 tax incentives.
Result: A retirement plan that not only meets federal guidelines but also positions your firm as a standout employer in Columbus’s competitive construction market.
The Columbus, Ohio Market
Columbus’s construction industry is at a crossroads. With billions of dollars in infrastructure and private projects underway, demand for skilled labor is surging. Yet, firms consistently report difficulty hiring and retaining workers.
For midsize employers, the challenge is sharper. Larger competitors can absorb higher wages and offer more robust benefit packages. Smaller firms often lean on flexibility and culture. Midsize construction companies sit in the middle—big enough to need retention strategies, but often without the internal HR resources to design them.
Here’s where a 401(k) plan becomes more than a compliance exercise. It’s a positioning strategy:
- It signals stability in an industry where many workers bounce from project to project.
- It demonstrates investment in long-term employee well-being.
- It provides a competitive talking point when recruiting against firms that only offer wages.
Secure Act 2.0 makes it easier and more affordable to launch or upgrade a plan. Tax credits offset startup costs, and new plan features like automatic enrollment reduce administrative burden. For a Columbus construction firm, this translates to lower turnover, reduced hiring costs, and a stronger employer brand—critical advantages when bidding on projects that require a reliable workforce.
Columbus is experiencing rapid growth, fueled by both public and private development. Major projects like the Intel semiconductor plant in nearby New Albany, new residential developments, and infrastructure upgrades around the Scioto Mile are reshaping the region.
Construction firms in the city face a crowded playing field. Whether building near Ohio State University, renovating properties in the Short North, or working on commercial projects downtown, firms are competing for the same limited pool of skilled workers.
Local landmarks underscore this reality. As Nationwide Arena and Lower.com Field host thousands of visitors, and new office towers reshape the skyline, Columbus is projecting itself as a growing metropolitan hub. Behind the scenes, construction firms are driving this growth—but only those with a stable workforce can keep pace.
By implementing a competitive 401(k) plan under Secure Act 2.0, midsize firms align themselves with the city’s forward momentum. They aren’t just building projects—they’re building reputations as employers of choice in one of the fastest-growing metros in the Midwest.
401k Case Study Example
Consider a midsize Columbus construction firm with about 60 employees. The firm has a solid pipeline of projects but has been struggling with turnover—losing skilled carpenters and foremen to competitors offering slightly higher pay or benefits.
Their leadership team turned to Wealth Axle for guidance. After a benchmarking audit of local 5500 filings, we identified that several peer construction firms in the region were offering Safe Harbor 401(k) plans with modest employer matches. By comparison, this firm offered no retirement benefits, leaving them at a disadvantage in recruitment.
We designed and implemented a Safe Harbor 401(k) with automatic enrollment, maximizing tax credits under Secure Act 2.0. Employee education sessions boosted awareness, and within six months, participation rates exceeded expectations.
The result? The firm retained several experienced tradespeople who had been considering other offers. Word spread that this was a company investing in its workers, helping it attract new talent for upcoming projects.
FAQs for Offering 401K in Columbus, Ohio
1. Does Ohio require employers to offer retirement benefits?
No. Unlike states such as California and Oregon, Ohio has no retirement mandate. However, Secure Act 2.0 provides tax incentives that make offering a 401(k) affordable and advantageous.
2. What does a Wealth Axle 401k plan audit involve?
We analyze publicly available Form 5500 filings to benchmark your benefits against similar employers in your industry and size. This shows exactly where you stand in the local labor market.
3. Why not just offer higher wages instead of benefits like 401k?
Higher wages attract attention, but benefits create loyalty. Retirement plans show long-term commitment, which drives retention more effectively.
4. What if employees don’t participate in the 401K retirement plan?
Secure Act 2.0 allows auto-enrollment, which significantly boosts participation rates and ensures employees are saving.
Conclusion
Just as strong foundations keep a building standing for decades, strong benefits keep a workforce stable. Columbus construction firms don’t need a state mandate to act. With Secure Act 2.0, they can seize the opportunity to lead rather than follow—offering retirement plans that both attract and retain top talent.
In a city defined by growth and competition, becoming an employer of choice isn’t optional—it’s essential. By partnering with Wealth Axle to design and implement a 401(k) strategy tailored to your workforce, your firm can build more than projects—you can build loyalty.
Ready to strengthen your workforce? Schedule a consultation with Wealth Axle today and take the first step toward becoming an employer of choice in Columbus, Ohio.