Good retirement plans are often hallmarks of great employers, but finding a good one and setting it up can be a complex endeavor. There is a plan out there for every company, though. It may take some time and effort to find one, but once you do, it can be well worth the effort.
Creating and maintaining a retirement plan benefits both the business owners and the employees. Following are tips on determining what type of retirement plan is right for your company:
How does creating and maintaining a retirement plan benefit a business owner?
A good retirement plan can help you attract and retain quality employees. In addition, a retirement plan gives both the employee and employer ability to defer income in a tax favorable vehicle.
The tax advantages associated with retirement plans are key. Contributions made to the retirement plan are deductible when deposited and grow from there on a tax deferred basis.
On a side note, employees today get confused between a benefit and an entitlement. A retirement plan is not an entitlement; it is a benefit. That is important to state, and it needs to be expressed to the employees.