If your business is not offering a retirement plan, you’re missing out on a lot of benefits. It’s not only suitable for your employees but also for you as a business owner.
You might be reluctant to offer a 401k plan due to concerns on issues related to administration, costs, and compliance. If you’re wondering whether your business is ready to adopt a 401k plan, below are a few things you need to look out for that will tell you it’s time to dive in.
1. Potential and Current Employees are Asking for Benefits
Most prospective employees will ask if your company has a retirement plan of any kind. If you don’t have a plan in place, you run the risk of them searching for employment elsewhere. If those in your current workforce are starting to have families of their own, having a retirement plan becomes that much more important to them.
It will help you attract an exceptional workforce while rewarding current employees resulting in increased retention.
2. You’re Looking for a Tax Break
Paying a lot of taxes is not something that makes any business owner happy! If you’re paying a lot in taxes, consider a retirement plan. In some cases, gains accumulated inside a retirement plan are not subject to tax.
3. You Haven’t Started Saving for Your Retirement
Even as a business owner, you might not be ready for retirement. If you don’t start saving soon, you will not have enough money to retire. According to Financial Samurai, you need to save 10 to 15 percent for about 40 years to live at your current lifestyle after retiring.
4. You Have Excess Cash at The End of The Year
Now your business is doing great. You might be wondering what you should do with all the extra money. If your company has excess cash, there are several ways you may want to invest, which include putting it in a 401k plan.
It will help you get to your goals faster than you expected. If you haven’t been hitting your contributions limits, you have the chance to do so.
Get a Retirement Plan
Establishing a 401k retirement plan is a long-term commitment to your company and your employees. It doesn’t have to be complicated! The choices you make for your business will impact the kind of talent you retain and their satisfaction.
Contact us today to get insights and assistance in choosing the best retirement options for your company.