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Retirement Plan Advantages

Small businesses generally establish retirement plans because of the tax advantages available to the firm and the employees. Combined with the more subtle business advantages, the establishment of a plan can be a sound financial decision.

TAX ADVANTAGES:

    • They provide tax deductions for plan contributions and administrative expenses.
    • Contributions are not currently reportable as income by the employees.
    • Investment earnings grow on a tax-deferred basis.
    • Retirement benefits may qualify for favorable income tax treatment.

BUSINESS ADVANTAGES:

    • They enhance your competitive position in the labor marketplace.
    • Competent employees can be retained with this valued benefit.
    • They provide your employees, including management, with logical, effective ways to accumulate capital and/or retirement income.
    • Profit sharing plans and 401(k) plans motivate employees to take a more personal interest in the company’s success.