Company Sponsored Simple IRA’s and Other Retirement Plans
Many businesses offer their employees retirement saving benefits, like simple IRA’s or a 401(k)’s. These retirement plans should be reviewed periodically to ensure they are competitive and up to date.
Like many other small businesses, your company may be considering or reviewing the various retirement plan options currently available. The retirement plan world changes all the time. Employer-Sponsored programs have become a key component of an individual’s retirement standard of living.
They are also an increasingly important tool for attracting and retaining high-quality employees.
If you have not reviewed your qualified plan in a while now may be the time to do so.
Besides helping to save for the future, retirement plans help business owners make the most of their business’s assets. Such benefits may include:
- Easy to establish and maintain platforms.
- Low-cost benefit with high value in employee perception
- Tax-deferred growth on earnings within the plan
- Current tax savings on individual contributions to the plan
- Immediate tax deductions for employer contributions
Some Plan Options Include:
– Defined Benefit Plans
– Defined Contribution Plans
– Rollover Individual Retirement Accounts
– Simplified Employee Pension
– Profit-Sharing Plans
– Simple IRA’s (Individual Retirement Accounts)
EMPLOYER GOALS FOR A RETIREMENT PLAN
Retirement plan goals generally fall into one of two groups:
Employers 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 contribution to the owners.
Or
Employers who want to offer a retirement plan for employees as part of a competitive benefits package.
There are many plan choices, which allows a company and design the plan that most efficiently helps them meet their objectives and the objectives of their employees. Companies should revisit those objectives periodically. Each type of plan has different advantages and disadvantages. Once you have an idea of your retirement plan design options, you are in a better position to weigh the alternatives and make the right design choice.
For answers to your questions about simple IRA’s, 401(k)’s, profit sharing plans, Pensions, Roth IRA’s and other retirement plan designs, contact Niche Financial Services at (610) 941-6900.