When it comes to the SECURE Act 2.0's affect on businesses, here are six areas leaders of startups should consider. Photo via Pexels

In an effort to encourage more workers to save for retirement, the federal government passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act that went into effect in December 2019, benefiting employers that established retirement plans with tax credits and providing employees with an avenue to save for retirement.

To build upon this retirement savings legislation, the U.S. House of Representatives recently passed a bill entitled, Securing a Strong Retirement Act of 2022, by an overwhelming bipartisan majority. This bill has been nicknamed SECURE Act 2.0 because it builds on the original SECURE Act. Although the SECURE Act 2.0 is not yet a law and requires consideration by the U.S. Senate, its powerful appeal in the U.S. House of Representatives is a strong indicator of further developments to retirement savings legislation in the not-so-distant future.

While the SECURE Act 2.0 affects all businesses, it appears that startups and small businesses may have the most to gain from the legislation in its current state. Below are six areas leaders of startups and small businesses should consider.

Boosts primary goals

The SECURE Act 2.0 is designed to boost the initial efforts of phase one by focusing on additional ways to address serious concerns about the adequacy of retirement savings in the U.S workforce. While it has always been critical for employees to take more responsibility for their retirement savings, now is the time to further elevate the conversation by appealing to employers and educating workers about investing early and the power of compound interest.

When more startups and small businesses offer retirement savings plans, it lays a foundation to increase the number of plan participants and improve their financial well-being. If the bill is passed, projections indicate at least a 10 percent increase in overall employee participation, which helps move the needle in a positive direction to advance retirement savings initiatives.

Offers employer incentives

The SECURE Act 2.0 provides significant incentives for startups and small businesses establishing retirement plans by doubling tax credits and number of employees who qualify. For businesses with fewer than 50 employees, the current tax credit is equal to 50 percent of administrative costs, with an annual cap of $5,000, for three years. However, the SECURE Act 2.0 would increase this to 100 percent for companies with up to 50 employees. It also creates a new credit that allows smaller employers to offset what they contribute to the plan, up to $1,000 per participant. This additional credit is available in full to employers with 50 or fewer employees, and a partial credit is available for employers with 51 to 100 employees. Penalties for some reporting mistakes will also be decreased, helping businesses avoid a negative impact on the bottom line.

Simplifies saving for employees

One of the best ways to save for retirement is through automatic payroll deductions that fund retirement accounts on a consistent basis. Many individuals are either uninformed, overlook the enrollment process, feel it is unaffordable or have other priorities. The SECURE Act 2.0 simplifies saving for employees by requiring employers that establish new plans to automatically enroll new hires in the plans at a pretax contribution level of three percent of their pay. The levels would escalate one percent annually up to at least 10 percent; however, they cannot exceed 15 percent of pay. There are some exceptions, including for small businesses with 10 or fewer employees. Although employees have the option to opt out of the program, in theory, it is simpler to remain enrolled, which can lead to increased financial security.

Appeals to multiple generations

With at least four generations currently in the workforce, employees are at different stages on their road to retirement, so the SECURE Act 2.0 takes the various groups into consideration. With older employees remaining in the workforce longer, the bill raises the age for required minimum distributions from 72-75 based on a phased approach. In addition, for employees aged 62-64, the catch-up contributions would be increased to $10,000 starting in 2024. However, starting in 2023, all catch-up contributions – affecting everyone age 50 and older – would have to be made to Roth accounts allowing the money to be taxed sooner. The benefit of Roth accounts is that distributions are tax-free.

The SECURE Act 2.0 provides the statutory basis for employers to match contributions for student loan debts based on employees’ student loan payments, even if employees are not making retirement contributions, which helps younger employees consumed with student loan debt continue to pay off loans, while getting retirement accounts started. It also addresses the influx of more long-term, part-time workers with at least 500 hours of service a year, by reducing the eligibility period for them to participate in a retirement plan from three consecutive years to two years, which is effective in 2023. With a broad appeal, startups and small businesses can rest assured that implementing a retirement plan will make a difference and benefit all workers.

Attracts and retains talent

When startups and small businesses evaluate their employee benefits, more weight is typically placed on providing health care benefits, as opposed to retirement plans, so they lag behind larger companies that offer 401(k) plans. As the competition for talent continues, smaller companies should consider establishing retirement plans to attract and retain top performers and gain a more competitive advantage. Through the SECURE Act 2.0, startups and small businesses would receive incentives to help level the playing field, so now is the time to develop a strategy and be prepared if/when the bill is passed.

Requires professional assistance 

Based on the current timeline, employers have roughly eight months to prepare, so it is vital to take the proper steps for their businesses. Establishing a 401(k) plan can be complicated and overwhelming for leaders at startups and small businesses, especially given their limited time and resources. Leaders should seek professional assistance rather than try it on their own for numerous reasons, including investment selection, fiduciary liability and payroll integration.

While providers such as banks, attorneys, accountants, insurance brokers and investment advisors may suffice, it is likely more efficient and cost effective to enlist a full-service HR provider that seamlessly handles HR administration and payroll processing, employee benefits, retirement services and more for a comprehensive approach to supporting startups and small businesses.

As startups and small businesses look for ways to move their companies forward, they should consider the benefits of establishing a 401(k) plan that not only attracts and retains top talent, but also helps to instill a greater sense of financial responsibility and well-being for the future of American families.

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John Stanton is vice president of retirement services operations with Houston-based Insperity.

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Houston hardtech accelerator names 8 scientists to 2025 cohort

ready, set, activate

National hardtech-focused organization Activate has named its 2025 cohort of scientists, which includes new members to Activate Houston.

The Houston hub was introduced last year, and joins others in Boston, New York, and Berkley, California—where Activate is headquartered. The organization also offers a virtual and remote cohort, known as Activate Anywhere. Collectively, the 2025 Activate Fellowship consists of 47 scientists and engineers from nine U.S. states.

This year's cohort comprises subject matter experts across various fields, including quantum, robotics, biology, agriculture, energy and direct air capture.

Activate aims to support scientists at "the outset of their entrepreneurial journey." It partners with U.S.-based funders and research institutions to support its fellows in developing high-impact technology. The fellows receive a living stipend, connections from Activate's robust network of mentors and access to a curriculum specific to the program for two years.

“Science entrepreneurship is the origin story of tomorrow’s industries,” Cyrus Wadia, CEO of Activate, said in an announcement. “The U.S. has long been a world center for science leadership and technological advancement. When it comes to solving the world’s biggest challenges, hard-tech innovation is how we unlock the best solutions. From infrastructure to energy to agriculture, these Activate Fellows are the bold thinkers who are building the next generation of science-focused companies to lead us into the future.”

The Houston fellows selected for the 2025 class include:

  • Jonathan Bessette, founder and CEO of KIRA, which uses its adaptive electrodialysis system to treat diverse water sources and reduce CO2 emissions
  • Victoria Coll Araoz, co-founder and chief science officer of Florida-based SEMION, an agricultural technology company developing pest control strategies by restoring crops' natural defenses
  • Eugene Chung, co-founder and CEO of Lift Biolabs, a biomanufacturing company developing low-cost, nanobubble-based purification reagents. Chung is completing his Ph.D. in bioengineering at Rice University.
  • Isaac Ju, co-founder of EarthFlow AI, which has developed an AI-powered platform for subsurface modeling, enabling the rapid scaling of carbon storage, geothermal energy and lithium extraction
  • Junho Lee, principal geotechnical engineer of Houston-based Deep Anchor Solutions, a startup developing innovative anchoring systems for floating renewables and offshore infrastructure
  • Sotiria (Iria) Mostrou, principal inventor at Houston-based Biosimo Chemicals, a chemical engineering startup that develops and operates processes to produce bio-based platform chemicals
  • Becca Segel, CEO and founder of Pittsburgh-based FlowCellutions, which prevents power outages for critical infrastructure such as hospitals, data centers and the grid through predictive battery diagnostics
  • Joshua Yang, CEO and co‑founder of Cambridge, Massachusetts-based Brightlight Photonics, which develops chip-scale titanium: sapphire lasers to bring cost-effective, lab-grade performance to quantum technologies, diagnostics and advanced manufacturing

The program, led locally by Houston Managing Director Jeremy Pitts, has supported 296 Activate fellows since the organization was founded in 2015. Members have gone on to raise roughly $4 billion in follow-on funding, according to Activate's website.

Activate officially named its Houston office in the Ion last year.

Charlie Childs, co-founder and CEO of Intero Biosystems, which won both the top-place finish and the largest total investment at this year's Rice Business Plan Competition, was named to the Activate Anywhere cohort. Read more about the Boston, New York, Berkley and Activate Anywhere cohorts here.

Houston team’s discovery brings solid-state batteries closer to EV use

A Better Battery

A team of researchers from the University of Houston, Rice University and Brown University has uncovered new findings that could extend battery life and potentially change the electric vehicle landscape.

The team, led by Yan Yao, the Hugh Roy and Lillie Cranz Cullen Distinguished Professor of Electrical and Computer Engineering at UH, recently published its findings in the journal Nature Communications.

The work deployed a powerful, high-resolution imaging technique known as operando scanning electron microscopy to better understand why solid-state batteries break down and what could be done to slow the process.

“This research solves a long-standing mystery about why solid-state batteries sometimes fail,” Yao, corresponding author of the study, said in a news release. “This discovery allows solid-state batteries to operate under lower pressure, which can reduce the need for bulky external casing and improve overall safety.”

A solid-state battery replaces liquid electrolytes found in conventional lithium-ion cells with a solid separator, according to Car and Driver. They also boast faster recharging capabilities, better safety and higher energy density.

However, when it comes to EVs, solid-state batteries are not ideal since they require high external stack pressure to stay intact while operating.

Yao’s team learned that tiny empty spaces, or voids, form within the solid-state batteries and merge into a large gap, which causes them to fail. The team found that adding small amounts of alloying elements, like magnesium, can help close the voids and help the battery continue to function. The team captured it in real-time with high-resolution videos that showed what happens inside a battery while it’s working under a scanning electron microscope.

“By carefully adjusting the battery’s chemistry, we can significantly lower the pressure needed to keep it stable,” Lihong Zhao, the first author of this work, a former postdoctoral researcher in Yao’s lab and now an assistant professor of electrical and computer engineering at UH, said in the release. “This breakthrough brings solid-state batteries much closer to being ready for real-world EV applications.”

The team says it plans to build on the alloy concept and explore other metals that could improve battery performance in the future.

“It’s about making future energy storage more reliable for everyone,” Zhao added.

The research was supported by the U.S. Department of Energy’s Battery 500 Consortium under the Vehicle Technologies Program. Other contributors were Min Feng from Brown; Chaoshan Wu, Liqun Guo, Zhaoyang Chen, Samprash Risal and Zheng Fan from UH; and Qing Ai and Jun Lou from Rice.

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This article originally appeared on EnergyCaptialHTX.com.

Rice biotech accelerator appoints 2 leading researchers to team

Launch Pad

The Rice Biotech Launch Pad, which is focused on expediting the translation of Rice University’s health and medical technology discoveries into cures, has named Amanda Nash and Kelsey L. Swingle to its leadership team.

Both are assistant professors in Rice’s Department of Bioengineering and will bring “valuable perspective” to the Houston-based accelerator, according to Rice. 

“Their deep understanding of both the scientific rigor required for successful innovation and the commercial strategies necessary to bring these technologies to market will be invaluable as we continue to build our portfolio of lifesaving medical technologies,” Omid Veiseh, faculty director of the Launch Pad, said in a news release.

Amanda Nash

Nash leads a research program focused on developing cell communication technologies to treat cancer, autoimmune diseases and aging. She previously trained as a management consultant at McKinsey & Co., where she specialized in business development, portfolio strategy and operational excellence for pharmaceutical and medtech companies. She earned her doctorate in bioengineering from Rice and helped develop implantable cytokine factories for the treatment of ovarian cancer. She holds a bachelor’s degree in biomedical engineering from the University of Houston.

“Returning to Rice represents a full-circle moment in my career, from conducting my doctoral research here to gaining strategic insights at McKinsey and now bringing that combined perspective back to advance Houston’s biotech ecosystem,” Nash said in the release. “The Launch Pad represents exactly the kind of translational bridge our industry needs. I look forward to helping researchers navigate the complex path from discovery to commercialization.”

Kelsey L. Swingle

Swingle’s research focuses on engineering lipid-based nanoparticle technologies for drug delivery to reproductive tissues, which includes the placenta. She completed her doctorate in bioengineering at the University of Pennsylvania, where she developed novel mRNA lipid nanoparticles for the treatment of preeclampsia. She received her bachelor’s degree in biomedical engineering from Case Western Reserve University and is a National Science Foundation Graduate Research Fellow.

“What draws me to the Rice Biotech Launch Pad is its commitment to addressing the most pressing unmet medical needs,” Swingle added in the release. “My research in women’s health has shown me how innovation at the intersection of biomaterials and medicine can tackle challenges that have been overlooked for far too long. I am thrilled to join a team that shares this vision of designing cutting-edge technologies to create meaningful impact for underserved patient populations.”

The Rice Biotech Launch Pad opened in 2023. It held the official launch and lab opening of RBL LLC, a biotech venture creation studio in May. Read more here.