According to Willis Towers Watson, 51% of employees joined their current company because it offered a retirement plan. Offering a 401k retirement plan shows candidates you care about their financial well-being. Meaningful benefits such as a small business 401k plan lend credibility to your company, which is crucial for a startup.
Many business owners think they can’t afford a 401k retirement plan but companies that offer this benefit report increased employee retention and happier, more efficient workers. With a tight labor market, offering a 401(k) plan for small business is essential to retaining employees.
Saving on Taxes
In 2001, a tax credit was created to encourage more business to launch retirement plans. The tax credit is for costs associated with starting a retirement plan, including a 401(k). The credit equals 50% of the first $1,000 of qualified startup costs, including expenses to set up and administer the plan. That does not include the long-term savings that come from investing pre-tax dollars in a retirement plan for you and your employees.
Setting up and administering a 401k is as simple as Requesting a Proposal. We can help position your business to attract and retain employees through a small business 401k retirement plan.