Benefit Now by Setting up A Retirement Plan
You and your employees can be secure in retirement with the right retirement plan.
Things to Consider:
– Retirement can last for more than 30 years
– You may need up to 80% of your current yearly income to retire comfortably
– The average monthly benefit paid by the Social Security Administration is about $1,200
What are Some of the Benefits to Setting up a Retirement Plan?
The benefits of a retirement plan for you, your business and your employees are numerous. Plans allow you to invest in your future financial security now. Additionally, you and your employees receive the nice bonus of significant tax advantages and other incentives.
– Employer contributions are tax-deductible.
– Assets in the plan grow free of taxes.
– Flexible plan options are available.
– Tax credits and other incentives for starting a plan may lower initial costs.
– A retirement plan can attract and help you keep better employees, reducing the cost of training new employees.
– Employee contributions can reduce current taxable income.
– Contributions and investment gains are not taxed until distributed.
– It’s easy to make contributions through payroll deductions.
– Compounding interest over time allows small regular contributions to grow to nice savings for retirement.
– Retirement assets can be carried from one employer to another.
– You can get Saver’s Credit.
How and Where Does One Start?
A good place to start is by contacting someone like Davis Bacon.
What are the stages of sponsoring a retirement plan?
Sponsoring a retirement plan has four stages: Choosing, Establishing, Operating, and Terminating the plan.
think ahead about retirement in general; and
learning about the specific ways that money can be put aside for you and your employees’ retirement, including types of tax-qualified retirement plans.
You take the steps needed to put your plan in place. Depending on the type of plan you choose, the administrative steps may include:
adopting a written plan;
arranging a fund for the plan’s assets;
notifying eligible employees about the terms of the plan; and
developing a system for recordkeeping.
You want to operate your retirement plan so that the assets in the plan continue to grow and the tax-benefits of the plan are kept intact. The ongoing steps you need to take to operate your plan may differ depending on the type of plan you establish. Generally, steps will include:
covering eligible employees;
keeping the plan up-to-date with retirement plan laws;
managing the plan assets;
providing information to employees participating in the plan; and
When your plan no longer suits your business, you will close out the plan and inform the appropriate parties.