One of the smartest ways a small business owner can plan for their own future and the future of their family is by installing effective qualified employer-sponsored retirement plans.
Not only can a properly designed plan provide for owners and their families, it may also provide a means for the owner to exit, sometimes facilitating a transition that might not otherwise happen.
This summer can be a great time to get a plan set up!
Company contributions to qualified plans are typically deductible, at least in part. If you have extended your 2023 company tax returns, you can still establish a plan for 2023 and claim the deduction. Then you’ll already be on track to take the same deduction in 2024. Startup costs may also be deductible.
New legislation can make the tax benefits even more compelling in the beginning years of the plan.
Some plans have company matches to employee contributions. By starting a plan now, all contributions will be from the company as employees will not have contributed in 2023. And there will be less than full year contributions for 2024. This can end up being a great on ramp to planning for the extra expenses of the match in future years.
Finally, we all know these plans are becoming table stakes for attracting and retaining a strong workforce.
Contact Phil today to get details on how a qualified plan can work for you!