Why Do I Need a Plan?

Why Do I Need a Plan?

There are three primary reasons why a business owner should consider establishing a retirement plan:

1. Tax Savings

All plan related expenses and contributions are fully tax deductible. This can result in significant tax savings for business owners.

2. Employee Recruitment/Retention

401(k) plans are relatively inexpensive to operate and can serve as a powerful recruitment and retention tool. Adding a pension plan on top of a 401(k) demonstrates a commitment to employees' long-term financial security.

3. Bankruptcy Protection

Money in a qualified pension plan generally keeps it protected from creditors in the event of bankruptcy. This provides an additional layer of asset protection for business owners.