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Retirement

3 Reasons a Small Business Should Offer a Retirement Plan

Emerging Technology Steers the Future of Accounting

You’ve probably seen the TV ads with the big ready “Easy” button. (Here’s a hint: it’s the ad for an office supply chain with a name that rhymes with maples.) If only you could take that red button and put it in front of all the small business owners who don’t have retirement plans set up for their companies. “Just hit the button,” you would say. And shazam! They’d have their retirement plans and you’d have more business. Okay, establishing a retirement plan isn’t THAT easy, but it’s close, especially with a smart, dedicated financial advisor like you on the job. You just have to educate your small business clients on how truly beneficial, and of course, easy, an employee retirement plan is. Give them the following three reasons and they’ll realize it really is as easy as 1, 2, 3:

1) It attracts and keeps employees. By offering retirement benefits, business owners create an enticing and powerful incentive. If a company offers a 401(k) as part of a benefits package, and a different company the employee may be interested in doesn’t, the odds of gaining that employee shifts in the favor of the company who offers the 401(k). (Taking it one step further by offering a company match, and the scales could be tipped even further.) Offering an employee retirement plan also shows that business owners really care about their employees. Owners get chalked up as being one of the good guys - and that speaks volumes. Word will get around, and the owner and the company will be better off for it. 

2) It's affordable. Many small business owners think it’s cost-prohibitive, or at least expensive, to offer a 401(k). On the contrary, a 401(k) plan is one of the lowest costs, highest benefits an employer can offer. There are also multiple tax benefits a company can receive by offering a 401(k), including a tax credit that offsets the start-up costs and a federal tax deduction of any contributions it makes to plan participant accounts. Plus, business owners can also participate. They have a future to be prepared for, too, so establishing a 401(k) for the company means establishing one for themselves, too.

3) Minimal time and attention is required. After all, small business owners have trusted advisors like you. They have you to set-up the account, administer the account, explain all the fiduciary responsibilities, and educate the plan participants. They don’t need the time and know-how to understand all the ins and outs of retirement planning because you have the time and know-how. And you have BenefitMall in your corner to make it even easier for you.

The hardest part of a retirement savings plan for your small business clients is understanding how easy a retirement savings plan can be. Pull out that retirement savings “Easy” button, and have your small business clients give it a push!

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*Written by BenefitMall's partner, PAi

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