Your small business should have a great retirement plan to ensure that your employees get the best care when they end their careers. Most employers know that offering great benefits is the best way to attract great employees. In addition to standard offerings such as health insurance and paid time off, you can boost your company’s appeal to prospective job candidates — and reward your existing staff — by offering a retirement plan to employees. Providing retirement options tells your team that you value them, are willing to invest in them, and want them to build a future at your company. Choosing the right plan can be a challenge, though.
Four Suggestions for the Retirement Plan
Consider these four tips to ensure you give employees the retirement services they need.
Offer Retirement Benefits That Employees Want
When determining what kind of retirement services you want to offer your staff, you should first consider what type of retirement services they want the most. Many retirement programs include defined contribution plans, defined benefit plans, non-traditional retirement plans, and traditional retirement plans. Talk to your employees to consider what benefits are best before you decide what kind of plan to go with.
Assess Other Potential Retirement Needs
When shopping for retirement plans, you should consider what kind of contribution limits your staff will need. Consider, too, whether the plan should allow “catch-up” contributions for certain employees that may surpass these contribution limits. Details like this are essential because they may make a big difference in whether your staff can take full advantage of the retirement benefit. These details may determine whether your employees utilize their retirement benefits. You don’t want to invest in a retirement program your staff doesn’t use.
Take Advantage of Tax Benefits
The most significant benefit of a retirement plan is its range of tax advantages. In addition to the tax-deferred growth employees can enjoy, your business can deduct all of its matching contributions from its taxable income. Contribution growth is tax-free; some distributions may be subject to additional tax savings. These benefits confirm that a retirement plan benefits more than just your employees. In many cases, it can be financially advantageous for employers, too.
Customize a Retirement Plan To Match Your Needs
Creating a great retirement plan is a fantastic way to invest in your employees and save on your business’s taxes. Of course, there are some expenses that you must consider, including fees and startup costs. In many cases, though, these expenses are tax deductible, further adding to the tax savings that a retirement plan can provide. Partner with your staff to find the right retirement services and invest in your company’s future.
About The Hilb Group
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.