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Time to Think About Setting up a Retirement Plan at Work

Time to Think About Setting up a Retirement Plan at Work

October 14, 2021

To be competitive in today's job market, you have to offer employees valuable benefits like a retirement plan to help them save for the future. Now is the time to think about setting up a retirement plan for your business.

Why Now?

Setting up a retirement plan takes some thought and planning. If you want to begin offering this benefit to employees at the beginning of next year, now is the time to explore your options. There may be a few variables you will want to review before putting anything into place. You may have to publish policies and come up with criteria for eligibility requirements; that is why now is the time to act. You may need the entire third quarter to get things set up for 2022.

What are the Benefits of Setting up a Retirement Plan?

One of the main benefits of a retirement plan for both employees and you as the employer is tax breaks. Deferred income offers a way to grow your assets without paying tax on them. There are also tax credits available to you as the employer. Additionally, putting money into a retirement account can protect it from creditors. Not only do your employees receive tax breaks, but the contributions you make to their accounts are also tax-deductible.

A retirement plan can also help educate your employees on how to save for the future and build financial freedom. When inviting employees to join the plan, point out the value of company-matched contributions and how they can help build their financial independence. In addition, compound interest can profoundly build wealth for employees who invest wisely.

A great way to be competitive and attract top staff members is to offer valuable benefits like an attractive salary package combined with a healthy retirement plan.

How to Set up a Retirement Plan for Your Company

There are quite a few options when it comes to setting up a retirement plan for your company. You may choose a 401k, SEP IRA, or Simple IRA plan. If you are unfamiliar with these terms, it is best to consult with professionals who can explain each option to you and help you choose the best retirement vehicle for your organization and your employees.

Every retirement plan is not the same, you need to find the correct plan to meet your desires and goals. It is essential to speak with an advisor who is knowledgeable in setting up retirement plans for "those that do it for themselves." At Merited Wealth we are focused on the growth mode. Let us help you prepare for your future and that of your entire staff.