Small Business Prepares for the Future: How Farm and Community Advisory Helped a Client Open a 401(k) Plan for His Employees

Peter, a small business owner in Santa Cruz, runs a successful local bakery with five dedicated employees. He always believed in treating his team like family and providing the best work environment possible. When Peter heard about California’s new law, SB 1126, requiring small businesses to offer retirement plans for their employees, he wanted to take immediate action.

Peter knew the importance of planning for the future—not just for himself, but also for his employees. With California Senate Bill 1126 set to expand retirement savings access to businesses with five or more employees, he wanted to ensure his business was compliant while giving his employees a valuable benefit. However, Peter wasn’t sure where to start or how the process worked.

What Is SB 1126?

SB 1126 is a new law designed to ensure that employees of small businesses in California have access to retirement savings options. Starting in 2026, businesses with five or more employees will be required to offer a retirement savings plan, such as a 401(k), or enroll in CalSavers, the state’s retirement savings program. The law is aimed at addressing the retirement savings gap, making it easier for employees to secure their financial futures.

For Peter, this law presented an opportunity to take proactive steps and help his employees prepare for their long-term financial security.

Farm and Community Advisory to the Rescue

Peter reached out to Farm and Community Advisory, a trusted financial advisory service known for helping small businesses. The team at Farm and Community Advisory took the time to explain SB 1126 to Peter in plain language, breaking down the main ideas:

• Business Requirement: By 2026, any business with five or more employees must offer a retirement savings plan.
• Options for Employers: Businesses can either set up their own 401(k) plan or enroll in the state’s CalSavers program.
• Employee Benefits: Offering a 401(k) plan allows employees to save for retirement, creating a more attractive workplace and boosting employee retention.

Peter was relieved to have experts guiding him through the process. Farm and Community Advisory helped him set up a 401(k) plan for his bakery, tailored specifically to his small business. They handled all the paperwork and ensured everything was compliant with the new regulations.

A New Benefit for His Employees

With the new 401(k) plan in place, Peter’s employees were thrilled. Many of them hadn’t considered retirement savings before, but now they had an easy and accessible way to save for the future. Peter felt proud to offer a benefit that would make a difference in their lives, and his employees appreciated the extra security.

The process was smooth, thanks to Farm and Community Advisory’s personalized support. Peter’s business is now prepared for SB 1126, and his employees are on the path to building a strong financial future.

If you’re a small business owner like Peter and want to get ahead of California’s SB 1126 requirements, contact Farm and Community Advisory today. Setting up a 401(k) plan is simpler than you think—and your employees will thank you for it!