What benefits are there to a business for sponsoring a retirement plan for its employees? |
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Business owners are eligible for tax deductions and tax credits. They get company tax deductions for the contributions to the plan for the employees and for the business expense of engaging a TPA firm to administer the plan. Depending on the amount that the employer contributes, the deduction can be worth thousands of dollars. Tax credits are available for companies with a new plan and fewer than 100 employees. The credit is equal to 50% of the first $1,000 of administrative and retirement-education expenses they incur for each of the first three years after the adoption of a new plan. The biggest benefit, however, is providing a vehicle for the retirement of the employees, as well as maximizing the business owner’s retirement benefit. |
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