If you are running a small business or you are self-employed, the thought of retirement planning may seem time consuming, confusing, and expensive. Retirement planning may not be fun, but it is definitely worth your time. There are obvious long-term benefits to having a retirement plan, but did you know that there are more immediate benefits? Here are some reasons to make the time for setting up a retirement plan for your business:
- Employer contributions are tax deductible. What the business puts in, the business can deduct in their taxes. This applies to self-employed individuals as well. Just keep an eye out for contribution caps so you do not contribute more than you can deduct.
- Tax credits for new plans. Eligible small business employers who start a qualified retirement plan may qualify for a dollar-for-dollar credit of up to $5,000 for three years. There is an additional $500 credit for businesses that set up auto-enrollment.
- Attract and retain employees. Many industries are struggling with hiring and keeping staff. Having a benefits package that includes retirement can help your business stand out in a crowded job market.
There are several plans you can choose from to best suit your business’ needs. The IRS has many resources for self-employed individuals and small businesses owners on their Retirement Plans for Small Entities and Self-Employed page. At IOOGO, our team works with many businesses to make sure they get every available business deduction and credit, including retirement plans. Contact us today!
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