When hiring new employees, one of the main things business owners should always remember is that prospective employees are also weighing different employment options. During any interview, they are checking you out as much as you’re checking them out! Just as you are searching for the right fit for your company, they are also searching for the right fit for their careers.
Good business managers realize this fact, and that’s why most companies seek to offer benefits that attract and retain top talent in their field. These days, a retirement plan is one of the main benefits workers seek in a prospective employer. Most American workers are well aware that the Social Security system is perpetually reported as being potentially insolvent in the future. More and more people are realizing that planning for retirement falls squarely on their shoulders, and a company that offers a comprehensive retirement package will earn a significant edge in attracting and retaining the best workers.
While helping your employees prepare for retirement, a qualified retirement plan also confers important tax benefits to both you and them. Employee contributions (except for Roth contributions) are not taxed until distributions are made in retirement. Money in the plan also grows free of taxes. As for your end of the deal, employer contributions are deductible from your income, allowing you to offer some degree of matching funds to your workers (the amount is up to you, if you choose to contribute to their retirement funds at all).
As with all other aspects of running your business, you will face a variety of choices when shopping for a retirement plan for your employees. A defined contribution plan allows your workers to contribute a percentage of their income to their accounts, in which the money is invested into various fund options. At retirement, your employees will elect to take distributions according to their own financial needs and priorities. This is a popular option for both large and small businesses, and the one with which most people are familiar.
We specializing in helping business owners choose a retirement funding option that matches their priorities, as well as that of their employees. Call us to schedule a consultation, and we can help you select a retirement benefit plan can will help you attract and retain top talent in your industry.