Benefits of offering a 401k plan to your organization
There a number of retirement plans for employees but trillions have already participated in 401k plan in the US making it a very popular employer-sponsored retirement plan. If your business or organization has not offered this plan yet, here are the reasons why you might just need to do that as soon as possible.
Setting up a 401k plan is easy
By notifying the IRS, you can enroll in a 401k plan program. To make things even easier, there is an automatic enrollment for your staff or employees. Do not fret. The enrollment can be withdrawn if someone enrolled wants to opt out of it. Also, a firm like MKS&H can easily tie up your payroll with a 401k plan. If decisions about investments involving 401k plan can prove to be too burdensome, MKS&H will handle them for you. Their staff knows the nitty-gritty of retirement programs.
You will be paying less taxes
As the employer, your contributions to a 401k plan will translate into tax deductions as they will be considered part of a business expense. When you allow MKS&H to track your finances, their staff might even be able to see more safe and legal ways to improve retirement planning including 401k plan audits.
Your employees will be delighted
Anyone finds saving for the future a complicated affair. Just how much to set aside? How much does one need for one’s dotage? These questions are not easy to answer. But with a 401k plan set up by an employer, the employee won’t have any troubles with them. All he or she must do is match the contribution of the employer. Then with the help of MKS&H, he or she knows that the contributions will be invested safely.
You have the power to decide whom to enroll
As the employer, you can choose who among your employees be part of the 401k plan program in your organization. Before setting up your 401k plan, you determine the requirements for eligibility as well as the exclusions. To make this error-proof, you may consult with MKS&H as both of you go over the names in the payroll.
Your employees will enjoy the tax deferrals
Employee contributions to a 401k plan are tax-deferred. They will only be taxed after withdrawal or upon retirement. That means the employer will be thanking you for assuring his or her economic future because of erasing a hurdle to make it happen. Payroll assistance from MKS&H is hawk-eyed about this matter.
You’re giving free money
But that is an occasion for pride and not worry. As earlier mentioned, the employer’s contribution means fewer taxes. From your employee’s eyes, he or she is seeing a very generous boss, a boss who appreciates his or her job so much. Upon retirement, you will surely be remembered fondly once he or she gets back his or her 401k plan money.
With a 401k plan, there are no losers, just winners. As the employer, you give your employees a necessary boost while saving on taxes. Your employees meanwhile won’t stress about what will happen to them once they retire. So, ask MKS&H to set a 401k plan for you now.