401(k) Retirement Plans: Making Benefits More Affordable
Part 3 of Making Employee Benefits More Affordable
You might be familiar with some of the primary benefits of offering a 401(k) plan — such as greater success in recruiting and retaining qualified employees, increased employee morale, and reduced employee turnover. But are you also aware of the tax credits that may make 401(k) plans even more cost-effective for your small business to implement?
If you establish a new 401(k) plan, your business may be able to claim a tax credit for some of the implementation costs. The credit equals 50 percent of the cost to set up and administer the plan and educate employees about the plan, up to $500 per year for the first three years of the plan. Plus, participants may be eligible for added savings through the “Savers Credit,” which is generally a portion of the eligible contributions made to a retirement plan or IRA.
Watch this video to learn more about 401(k) plans and the tax credits you and your employees may be eligible for. Then watch our related videos for the rest of our e-book, 7 Questions Every Small Business That Hires Employees Will Have to Answer.