Have you been considering creating a 401(k) plan as part of your employee benefits package but aren’t sure if it’s the right move? Offering a 401(k) plan to employees can be a good idea for small businesses for several reasons:
- Attract and retain top talent: Offering a 401(k) plan can make your small business more competitive when it comes to attracting and retaining top employees. Many employees consider a 401(k) plan an important benefit when choosing where to work.
- Tax benefits: Small businesses that offer a 401(k) plan may be eligible for tax benefits, such as tax deductions for contributions made to the plan.
- Employee savings: A 401(k) plan can help employees save for retirement, which can lead to increased job satisfaction and less financial stress.
- Employer contributions: Employers can choose to make contributions to employees’ 401(k) accounts, which can help attract and retain top talent and show that the company values its employees.
- Employee education: Offering a 401(k) plan can provide an opportunity for employers to educate employees about retirement planning and investment options.
The Department of Labor offers a great resource for questions about establishing a 401(k) plan.
Need help creating and implementing a 401(k) for your business? The business advisors at Stitely and Karstetter can help. Contact us today for a free consultation!