A 401(k) plan is one of the most valuable benefits a company can provide their employees, but it also has many advantages for employers. However, many business owners are still hesitant to set up a retirement program because of concerns over cost, ongoing administration, and compliance. Fortunately, these are all tasks an accountant can help with. They will maximize your tax savings, develop a manageable recordkeeping system, and keep your plan up-to-date with the most recent laws. With that taken care of, here are some of the top reasons to offer a 401(k) plan.
3 Reasons to Have an Accountant Set Up a 401(k) Plan for Your Business
1. Reduce Business Taxes
Typically, the costs to administer a 401(k) program are tax deductible, as are your matching contributions. Smaller businesses may also be able to claim a tax credit that helps offset the expenses involved in starting a new plan.
2. Attract & Retain Skilled Employees
Companies that offer retirement plans gain a competitive edge when it comes to recruiting talent for their workplace. Many people make it a priority to look for jobs that offer retirement options, which means you could be missing out on several hard-working applicants if you don’t have a 401(k) plan accessible. Employees who are given the chance to save for their golden years are also more likely to be satisfied with their place of employment, contributing to better retention rates and increased motivation to be as productive as possible.
3. Support Your Own Retirement
As the owner of a business, you should also be considering your own future and retirement savings. A 401(k) plan will ensure you’re able to continue growing a nest egg even if income from the company varies. Talk to an accountant about what mutual funds offer the best returns compared to the risk involved.
If you are looking for an experienced and reputable accountant to help set up a 401(k) plan for your company, contact Lee & Smith, PLLC. For nearly three decades, they have been entrusted to manage the finances of businesses located in the Texarkana area. They will help you explore different plan options and identify which will be most suitable for your situation. Call (903) 832-4339 to schedule an appointment or visit their website for more information on all the services they offer.
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