Named after a section of the U.S. tax code governing them, 401(k) accounts have long been recognized as an important tool to help U.S. employees save for their retirement years.

401(k)s have well-established rules and regulations that guide participants and are used by a large share of American workers.

Fortunately for small business owners, Congress realized nearly four decades ago they also needed a way to save. In 1986, Congress established 831(b) Microcaptives, allowing small business owners a new option.

Much like a 401(k) plan, an 831(b) Microcaptive allows small businesses to set aside tax-deferred dollars. Those dollars can be used to mitigate risks that might not be covered by their insurance plans, an option they found was especially important during the COVID-19 pandemic.