2 Simple Ways Your Small Business Could Be Taking Advantage of Some Hefty Tax Benefits!

It’s no secret that a 401k plan benefits employees. That’s because most company match programs and vesting options make a 401k a no-brainer for your staff to invest in.

But did you also know that 401k programs benefit you as the employer?

If you haven’t thought about offering retirement benefits to your staff, now is the time to start.

Here are some benefits to consider:

Recruit and Retain

In today’s workforce, it’s becoming the norm to expect certain benefits such as retirement and healthcare. From an employers perspective, offering a 401k can give you that extra edge to stand out amongst your competitors. Attractive benefits are now a must.

Incentivize Performance.

Employers also have the ability to use retirement perks as incentives. Many organizations tie their contributions to specific goals, and when employees meet these benchmarks they are rewarded by increases in their 401k contribution. Depending on how you choose to structure your benefits program, they can be used to incentivize performance, which ultimately helps the company succeed.

Tax Perks.

401k plans also help the employer come tax season. Matched contributions and administrative work associated with the benefits plan are tax-deductible. Lower your tax burden with a company-wide 401k program.

Does Establishing a 401k Program for Your Small Business Sound a Little Intimidating?

If so, a Simple IRA plan offering might be a better starting point.

In a Simple IRA plan, the employer establishes an individual Traditional IRA account for each of their employees. Both the employer and employees can then contribute to these accounts, earning tax benefits both at the time of the contribution and later, by deferring income taxes on the profits earned on the assets in the account.

The employees receive 100 percent vesting immediately on the employer contributions made to their Simple IRA accounts, meaning that if they leave their job, they can take all of the funds with them.

What Are The Advantages of Offering a Simple IRA to Your Employees?

• Low Cost: Relative to other alternatives, the administrative costs to establish and maintain a Simple IRA plan are VERY low.

• Simplicity: Extremely simple setup process. Just give us a call and we’ll take it from there!

• The Power of Choice: You (as the employer) can choose to either match the employee contributions to their individual Simple IRA accounts, or the company can contribute a fixed percentage of all eligible employees’ pay to each account.

• Less Stress: As an employer, you have NO filing requirements with the IRS.

These perks are highly beneficial from a production and financial standpoint. Not to mention, a retirement program lets your staff know that you value their financial future. Showing you care can do wonders for company culture.

Take the time to learn more about how a 401k or Simple IRA offering for your staff can specifically benefit your business. We’ll help you put together a specific plan to ensure you’re on your way to success.