If there’s one thing that all of us are going to have to face, it’s retirement. That’s because if there’s one thing that we can’t stop, it’s time. And so, no matter what age you might currently be, it’s really important that you make setting up a retirement fund a top priority. And if you happen to be someone who runs a business, one way that you can support your employees in solidifying their financial future is by setting up a 401K plan.
If you’ve been considering it but you’re not yet convinced that it’s something that you should do, you’ve certainly come to the right place. That’s because we are about to share with you five reasons why it pays to offer a 401K plan to your employees below:
Providing a 401K will attract more employers. There used to be a time when receiving some form of a pension plan was pretty common for employees. But as the economy and the workforce have been suffering, it is becoming a pretty rare find. So, if you’re someone who actually offers one, you are going to be sure to attract potential staff members, just based on your benefits package alone. This brings us to our next point.
Providing a 401K will reduce your overhead. Were you aware of the fact that close to 40 percent of people who work for small businesses said that they would leave the job that they currently have for another that offered a 401K program? This means that if you want to reduce the amount of overhead within your company, it will definitely work within your favor to have a 401K program.
Providing a 401K will earn you a tax break. Something that all business owners are concerned about is getting a break on their taxes. Well, with the help of having a 401K, you can get one. In fact, a 401K can earn you as much as a $500 tax break for the first three years that you offer a 401K. As an added bonus, you can also get tax deductions for your employers’ contributions too.
Providing a 401K is something that is easy to do. Another thing that’s beneficial for businesses that offer a 401K is the fact that 401K providers do not have to spend a lot of time or effort trying to get their 401K program started. Thanks to many online programs, you can have one created in a matter of minutes so that you and your employees can have access to their accounts 24 hours per day. Some websites that provide additional information on how to start a 401K include DOL.gov, Market Watch and BogleHeads.org. Just go to one of the sites and put “how to start up a 401K” in the search field.
Providing a 401K helps the economy. And finally, another reason to offer your employees a 401K plan is that it’s great for the economy. When your staff is happy and they feel like they are being supported in preparing for their future, it gives them more disposable income and that’s always a good thing. Bottom line, you can’t go wrong by having a 401K program so set one up just as soon as you possibly can.