Did you know there are many benefits to offering an Employer-Sponsored Retirement Plan to your Employees?
Not to overstate the obvious, but so far 2020 has been a rough year and even tougher for small business owners. Now that it is October it is time to plan and prepare for 2021. An important aspect that you should not overlook when planning ahead is to make sure you are maximizing the benefits of Employer-Sponsored Retirement plans. Benefits include…
- Owner Tax Deduction
- Employee Tax Savings
- Recruiting and Retention
- Retirement Savings
Setting up a retirement plan for your business is a great way to take advantage of these opportunities. For example, if your company has a 401k retirement plan and you are receiving a W2, you could defer into the plan which reduces your personal taxable income thus reducing your personal tax liability. In addition, your business could offer a match and a profit sharing contribution. Each of these are business expenses that reduce business taxes. Your employees could also defer into the plan and help reduce their taxable income. Not only does this help them on their taxes and provide a source of income when they retire, it ensures you are attracting and retaining top talent since employees value having this option. You are also communicating to your employees that you are committed and investing in their future.
Get further details about these benefits in the article below. And give me a call to discuss your questions and we can determine which retirement plan would work best for your business.
What Are the Benefits of Small Business Retirement Plans?
Article from www.smallbusiness.chron.com
Without some form of formal retirement plan, both the owners and employees of a small business are leaving a large part of their financial future to chance. Besides providing a very important source for retirement savings, offering a small business retirement plan provides several other important benefits. Click here to continue reading this article.
Blog by Alex Kiritschenko – Financial Advisor, Senior Tax Professional
Learn more about Alex and the rest of the Storen Financial team here.