An employer sponsored retirement savings plan is a win/win option offering tax benefits and security to both the business owner and employee with a large array of options. Here are the top three benefits for establishing a 401(k) for your company:
Did you know that small businesses establishing their first 401(k) can qualify for a $500 tax credit per year for the first three years? In addition to this credit all employer contributions and plan administration costs are tax-deductible. Finally, you as the business owner are still an employee of the business and able to contribute into the plan tax-deferred.
Your employees have worked hard and, as you continue to grow your business, you may need to bring more loyal employees on board. Reward your employees by offering a strong retirement plan thereby increasing employee loyalty and retention rates. The Employee Benefit Research Institute reported that only about 62% of employers of full-time salary workers offered retirement plans in 2013. Give your company an edge and differentiate yourself to job seekers with a comprehensive retirement plan.
Financial concern is one of the greatest stressors for people across the pay grade. Offering a retirement plan is an easy way to reduce stress that can interfere with productivity. But, this isn’t just about your employees. How are you preparing for retirement? By contributing to a retirement plan, not to mention taking advantage of tax deferral and company matching, you strengthen your financial and overall wellness.
Hillspring Financial, Inc. knows that, as a business owner, you have all that you can handle in just running and growing your company. As much as you may want to establish an employer sponsored retirement plan, the options and fiduciary responsibilities can be daunting. That is why we make it our business to understand your goals and build a plan that works for you – so you can focus on your business.