According to The Pension & Welfare Benefits Administration, small businesses employ nearly 40 percent of the private-sector workforce in the United States. Many of these businesses offer their workers retirement saving benefits, like simple IRA’s. These retirement plans should be reviewed periodically to ensure they are competitive and up to date.
Like many other small business owners in the United States, you may be considering or reviewing the various retirement plan options available for your company. Employer-Sponsored retirement plans have become a key component for retirement savings. They are also an increasingly important tool for attracting and retaining high-quality employees.
Besides helping employees save for the future, retirement plans help business owners make the most of their business’s assets. Such benefits may include:
Some Plan Options Include:
- Defined Benefit Plans
- Defined Contribution Plans
- Simple Plans
- Simplified Employee Pension
- Profit-Sharing Plans
- Simple IRA’s (Individual Retirement Accounts)
EMPLOYER GOALS FOR A RETIREMENT PLAN
Small employer retirement plans generally fall into one of two groups:
Employers who want to set up a retirement plan primarily because they want to create a tax-advantage savings vehicle for themselves and thus want to allocate the greatest possible part of the contribution to the owners.
Employers who want to offer a retirement plan for employees as part of a competitive benefits package.
There are many plan choices, which allows each company to establish its own goals and design the plan that most efficiently meets them. Companies should also revisit those objectives periodically. Each type of plan has different advantages and disadvantages and in order to pick the most appropriate fit, you need to stay current and up to date in qualified plan technology and plan designs. Once you have an idea of what your motives are, you are in a better position to weigh the alternatives and make the right choice, whether that is providing Simple IRA’s or a more comprehensive plan.
For knowledgeable answers to your questions about simple IRA’s, profit sharing plans and other retirement plan options, contact Niche Financial Services at (610) 941-6900.