A Retirement Plan could be

In the Community

A retirement plan could be big for your business

By Patrick R. Velekei

There are millions of small businesses in the United States. Many of them do not have a retirement plan in place for their owners or employees. Some think it is too complicated or costly. Others have just never gotten around to it because of more urgent priorities running their business. Whatever the reason, small business owners can be well served to consider the benefits of a small business retirement plan for their company.

Many small business owners expect the sale of their business to provide a major source of retirement income, but they could fall short. Some people don’t get as much for their business as they believe they should, so it may be important not to rely on the sale of your business to fund all of your retirement needs.

As an employer, a company retirement plan may help you: • Save for your own retirement • Attract and keep good employees • Deduct employer contributions from current taxes • Your employees (and you) may benefit because they can: • Invest for their future retirement • Realize tax-deferred growth of investments • Be more content and motivated by their benefits package Many business owners have questions about setting up a retirement plan, and may be interested to know: • Retirement plans exist for businesses of every size, whether you have many employees, or even if you don’t have any employees. • A number of retirement plans are more affordable than you might think. Small businesses may also qualify for tax credits as incentives to establish a retirement plan. • Not all small business retirement plans require the employer to contribute money. • Today’s small business plans are relatively easy to set up and operate. Some have no annual Internal Revenue Service (IRS) reporting requirements.

Preparing for retirement may not seem like the most urgent issue to small business owners. However, there are many reasons that owners should consider putting a plan in place. This is often easier and less costly than many owners expect and may be very beneficial for both owners and employees.

The information in this article is for educational purpose only and is not intended to provide specific advice or recommendations for any individual nor does it take into account the particular investment objectives, financial situation or needs of individual investors. This material is not intended to provide, and should not be relied on for tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated.