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Boca Raton Small business retirement plans – How can these plans benefit you?
Financial & tax advisors in Boca Raton, Florida, specializing in tax-advantaged plans for small-business owners, entrepreneurs, and other self-employed professionals. They can also help you find a plan that meets your business needs and retirement objectives with flexible funding, tax-deductible contributions, a wide array of investment options, and higher contribution options than a traditional IRA. So, get a Boca Raton small business retirement plans that’s right for your business. Why?
Those who own or work for a small business without a formal retirement plan leave a large part of their financial future up to chance. In addition to making a significant contribution to retirement savings, offering a small business retirement plan provides several other benefits as mentioned below:
Tax Benefit to Owners
In the case of a small business retirement plan, the costs are fully deductible on the company tax return. Business contributions made to employees’ retirement accounts are also deductible. As such, owners of small businesses benefit the most from a retirement plan. This is because the annual contribution limits for these plans are much higher than for an IRA (Individual Retirement Account), allowing more of the owner’s income to be protected.
Tax Savings for Employees
Contributing a portion of an employee’s wages to a retirement plan reduces the employee’s income tax liability. Contributions to a retirement plan reduce income taxes, net taxes, and taxable income. Furthermore, since the tax on investment growth is deferred until distributions begin, deferred wages are more valuable than increases in take-home pay.
Savings for retirement
Employer-sponsored pension plans are a major source of retirement income for many employees. Employers’ contributions to retirement plans may constitute all, or a large part, of the employee’s total savings. An employee whose retirement account balance continues to grow may feel more satisfaction at work and at home, knowing there is an option to save for retirement.
Attracting and Retaining Talent
Often, it is difficult for small businesses to find and retain quality employees. Offering a retirement plan with attractive features is a good way to retain quality employees. For a small business owner to keep talented employees from leaving for greater benefits offered by a large company, he or she must offer something competitive.
Summing Up
In conclusion, small business retirement plans offer tax advantages through deductibles, deferred taxation, and tax-free growth. It is also typically feasible for small employers to take advantage of tax credits for the creation and administration of their plans, facilitating their implementation.
Umar Nisar was born and raised in the busy city of Abbottabad. As a journalist, Umar Nisar has contributed to many online publications including PAK Today and the Huffing Post. In regards to academics, Umar Nisar earned a degree in business from the Abbottabad UST, Havelian. Umar Nisar follows the money and covers all aspects of emerging tech here at The Hear Up.
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