As a business owner you have the opportunity to use programs specifically designed for businesses and used for retirement planning and investing. However, many business owners are not taking advantage of these opportunities. If you are a business owner and do not have a retirement plan in place, then contact us, we can help.
Why You Should Set Up A Plan
You can invest in your financial security as well as offer a plan where your employees can invest in their financial security.
As the Employer, You Get Significant Tax Advantages and Other Incentives
- Employer contributions are tax-deductible
- When assets in the plan grow no taxes are paid until they are taken out of the plan
- Tax credits may be available for starting a plan (this can reduce costs)
- Having a retirement plan can attract and retain better employees. This can reduce the costs of employee turnover and training.
Employees Benefit From Your Decision to Open a Plan
- Depending on the plan, employees can reduce current tax liability on their income through salary deferrals
- Contributions and investment gains are not taxed until taken out of the account
- It’s easy for employees to make contributions through payroll deductions
- Compounding interest will allow small regular contributions to grow significantly for retirement savings
- Retirement assets can be moved from one employer to the next
- Saver’s credits are available
- Employees have the opportunity to improve financial security in retirement
What are the steps to sponsoring a retirement plan as an employer?
- Choosing the Right Plan for Your Company
We help you “think ahead” towards retirement planning in general. We review the different plans available to you as an employer. We discuss how money can be set aside in these plans for yourself and your employees. And, we discuss the tax benefits for you and your employees.
- Establishing Your Plan
We walk you through the necessary steps to put your plan in place. Depending on the type of plan chosen, these steps may include; adopting a written plan, arranging investment choices inside the plan, notifying and educating employees about the terms and the benefits of the plan, and discussing set-up and maintaining record keeping for the plan.
- Operating Your Plan
We work with you making sure the proper operations of the plan are maintained. This is important to the continued growth of the plan assets as well as to the preservation of the plan assets. These operating steps will vary according to the plan you choose. Basic steps include; making sure all eligible employees are covered, making sure contributions are done properly, and keeping the plan up-to-date as retirement laws change. Additionally, we have knowledgeable resources when it comes to managing plan assets, investor education, and benefit distribution.
- If and when the time comes… Terminating Your Plan
Let’s face it, things do change. If your plan no longer serves its purpose then you will need to terminate it. We will help with the close-out of the plan and work with you to make sure the appropriate parties are notified. Additionally, we work with you and your employees to properly transfer plan assets to avoid any unintended taxable consequences.
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