While it is more common than not for an employer to offer a retirement plan, still there are some that do not. The IRS offers information and materials for those that are considering offering a retirement plan—which, in turn, can be helpful information to provide potential clients and customers.
The IRS argues that starting a retirement plan has a number of benefits to an employer and its employees, such as:
- Employer contributions are tax deductible.
- A plan helps attract and retain employees.
- Small employers may receive a tax credit for new plans of up to $5,000/year for three years for the cost of setting up a new plan.
- Low- to moderate-income employees may claim a saver’s credit of up to 50% for contributions made to IRAs and certain retirement plans.
Articles
The IRS has posted a series of drop-in articles on the IRS Outreach Connection https://www.irs.gov/newsroom/outreach-connection-for-tax-exempt-entities... webpage. These include:
- Choosing a retirement plan https://www.irs.gov/newsroom/choosing-a-retirement-plan
- SARSEP-IRA Plans https://www.irs.gov/newsroom/sarsep-ira-plans
- Choosing a SEP-IRA Plan https://www.irs.gov/newsroom/choosing-a-sep-ira-plan
- Choosing a SIMPLE IRA Plan https://www.irs.gov/newsroom/choosing-a-simple-ira-plan
- Choosing a 401(k) Plan https://www.irs.gov/newsroom/choosing-a-401k-plan
- Choosing a Defined Benefit Plan https://www.irs.gov/newsroom/choosing-a-defined-benefit-plan
- Profit-Sharing Plans for Small Employers https://www.irs.gov/newsroom/profit-sharing-plans-for-small-employers
Publications
The IRS also provides publications intended to assist in finding a retirement plan that will best serve a particular employer.
- Pub. 4118, Lots of Benefits Publication 4118 https://www.irs.gov/pub/irs-pdf/p4118.pdf
- Pub. 4484, Choose a Retirement Plan for Employees of Tax Exempt and Government Entities https://www.irs.gov/pub/irs-pdf/p4484.pdf
The IRS provides publications especially attuned to small businesses as well.
- Pub. 3998, Choosing A Retirement Solution for Your Small Business https://www.irs.gov/pub/irs-pdf/p3998.pdf
- Pub. 4222, 401(k) Plans for Small Businesses https://www.irs.gov/pub/irs-pdf/p4222.pdf
- Pub. 4333, SEP Retirement Plans for Small Businesses https://www.irs.gov/pub/irs-pdf/p4333.pdf
- Pub. 4334, SIMPLE IRA Plans for Small Businesses https://www.irs.gov/pub/irs-pdf/p4334.pdf
- Pub. 4587, Payroll Deduction IRAs for Small Businesses https://www.irs.gov/pub/irs-pdf/p4587.pdf
- Pub. 4806, Profit Sharing Plans for Small Businesses https://www.irs.gov/pub/irs-pdf/p4806.pdf
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