STR ATEGIC BUSINESS INSIGHTS FROM ALERUS
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S H O U LD YO U R B U S I N E S S O FFER A R ETI R EM ENT PL AN B EN EFIT ? H ER E’ S WHAT TO AS K YO U R S ELF. Retirement benefits are among the best known and most desirable employee benefits offered. So why don’t more businesses offer them? Not all tools are right for every situation, but there also can be a lot of misunderstanding about complex company-sponsored benefits. Owners who are leery of getting in over their head or who aren’t sure if the effort will be worth it may hesitate to make such a big change. If you like the idea of offering retirement benefits but aren’t sure where to start, ask yourself:
And business contributions to employee retirement are tax-advantaged, which can help your business come tax time.
What kind of plan makes the most sense for my business? 401(k), SIMPLE IRA, SEP – it’s a regular alphabet soup. But behind all those acronyms and numbers, each option offers unique features, benefits, and opportunities more than can be explained in a few words. Talk to an expert who can help you understand, unravel, and evaluate your options, which are probably more extensive than you realize.
Will it provide a recruiting or retention edge, and what is that worth?
What will it take to offer and manage a plan?
Many businesses struggle to hire and keep good people. A retirement plan can help you stand out from the competition or keep an employee from walking (especially with options that reward longevity). Depending on how hard it is for you to find good people, this could tip the scales.
You’ve got a lot on your plate, so figure out how a retirement plan fits. Maybe your business has a person who can manage the plan, or maybe they’ll need training. Do you run everything yourself? A benefits partner can handle administration, communications, enrollment, and support for a reasonable cost.
How will a retirement benefit affect my bottom line? Nothing in life is free, but some things are a better value. That includes retirement plans. Your business could benefit from tax advantages the government offers to encourage more employers to provide retirement benefits.
There are lots of reasons to offer retirement benefits, including the help it provides your valued employees in preparing a solid future for themselves. With the right guidance from an Alerus business advisor, you may find that offering a retirement plan makes more sense that you would expect.
The information contained herein is general in nature, is provided for informational purposes only and is not intended to provide specific advice or recommendations for any individual and should not be construed as legal or tax advice. Alerus does not provide legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.