401(k) plan Benefits for your business
Employers have the ability to establish “vesting” schedules to increase employee retention and contribution. This allows participants to decide how much to contribute to their accounts on a before-tax basis. Employers are able to take advantage of tax deductions for their contributions to employee’s accounts. Generally speaking, the Federal and State governments will not tax contributions and earnings until they are distributed.
While common among large companies, small businesses can also use a 401(K) plan for retirement and offer an array of investment options. Offering a retirement plan is a smart way to help level the professional playing field between your small business and larger companies.
Top 3 reasons to offer a 401k plan:
- Attract talented people in today’s challenging job market.
- Retain valuable employees who want retirement options in their benefits package.
- Enjoy tax advantages that may be available to you as an employer offering the plan.
Read more about the benefits of offering a 401k plan to your employees in this Quickbooks article.
Selecting the right retirement plan is important to both companies and employees, which is why we encourage you to consult with one of our professionals. Contact us for a complimentary consultation today.
What are the requirements?
- Creating a written plan for the administration
- Establishing a trust fund for the planned assets
- Adhering to more strict record keeping requirements
- Adhering to fiduciary responsibilities and duties