as the owner of a small business , you want to offer your employees a work environment that is pleasant, productive and sustainable. Fringe benefits that you offer are appreciated and certainly do not go unnoticed. Yes, your employees enjoy free soda and Hawaiian shirt day, but what they really need is the benefit of financial security in the long term. Your small business can help by offering a retirement savings plan. 
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Is America facing a retirement crisis?
Did you know that the median retirement account balance in households of working age typical American dropped to $ 2500 in 2014, down from $ 3,000 the previous year? The National Institute on Retirement Security reports that 40 million households have no retirement savings. And it gets worse the older you are. For more close to retirement, the situation is even more dire. The median retirement account balances for pre-retirees was $ 14,500, with 62 percent of Americans aged 55 to 64 having just saved within a year of their annual income.
The bottom line is, employees need to save for retirement, but few do. Continue the problem, employees find themselves with a lack of access to retirement savings plans in the workplace, especially low-income workers. Over 43 million people worked for an employer who does not sponsor a plan in 2013 - 34 million full-time workers. In addition, those who have access are simply not saving enough. These two challenges, if anything, can have serious consequences for the Americans, their families, and the economy in general.
Part of the problem is that we no longer live in a guaranteed "retirement plan provided" world. Our retirement means evolved a (k) plan 401, which requires accessibility and education and action of its participants. This new way of savings requires that American workers to take over financial decisions and take more risks with regard to where their money goes and how much will be saved. Employees want to save, but the opportunity is not always there for them to do so.
How Does a Small Business Advantage On (k) corresponding plane 401?
If you are a company that values quality employees and intends to retain talented people for the coming years you can implement a 401 (k) match program, if you have not already. Most employees, especially the younger generations, are willing to save for retirement. Often if a talented candidate has several offers from different companies, one (k) contribution match 401 could become a factor in the choice of their employer. So how does this type of plan you enjoy as an employer?
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A sponsored business plan is an effective way for small business owners to save for retirement. Owners can contribute to individual retirement accounts or Roth IRA, but contribution limit for these plans is just $ 5.500 per year ($ 6.500 for anyone 50 years and more). It's a third the maximum allowed for a 401 (k) plan
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There are a wide range of investment options available for the sponsor plan to offer, compared to other pension plans.
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employers can get a tax credit due to the economic growth and tax relief and Reconciliation Act (EGTRRA) to compensate startup costs and the cost of educating employees about a new plan.
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Given that the taxable income of global employees is reduced with pre-tax 401 (k) contributions, employer payroll taxes can be reduced.
How an Employee Benefit of (k) 401 corresponding map?
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employees are immediately 100 percent vested their own contributions to tax-deferred.
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employees who retire any time during the calendar year in which they turn 55 or older are not subject to the penalty of 10 percent.
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employees withdrawals before age 59 1/2 may be subject to 10 percent penalty.
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contributions to a 401 (k) are not subject to tax federal income until a distribution plan is done. Gains and investment income until they are distributed to deferred tax.
Conclusion
You're not just want to be a middle of the employer of the road. You want to be a company that is desired, reputable and well established. Small businesses stand to gain from providing their employees a plan (k) 401. Providing retirement benefits has become a great way for small businesses competition for talented workers and keep them happy, appreciated and contribute to the growth of your business.
What are your thoughts on the provision of retirement benefits for your employees? Please share with us!
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