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From retirement savings to business savings with 401(k) brokers

Big savings and tax breaks aren’t just limited to your big blue chip corporations. As a small business, there are ways to help your business with costs all while having something in place to retain your employees. One of the best ways of doing so is by utilizing a 401(k) retirement plan from a trusted provider.

If you don’t already have one, you’ve almost certainly heard of a 401(k). They aren’t just a tool limited to large corporations. Even if you consider yourself a small employer with less than 100 employees, there are perks for your business having a 401(k). The perks I will lay out have to do with the cost to the business.

Milwaukee area 401(k) advisors explain Wisconsin tax credits!

No one likes paying taxes especially not business owners. Well, the good news is with a 401(k) there are ways to save on taxes—the first being for those with 100 or fewer employees. The IRS is offering a tax credit of 50% of your eligible starting costs. This translates to $500 or $250 per eligible non-highly compensated employee to a max of $5,000. This credit is allowed to be taken for the first 3 years.

Local retirement provider explains a key tax deduction from contributing to your employees

The second way to save is by offering a match. To keep numbers simple let’s say your total annual payroll is $100,000 and you offer a 3% match. If everyone contributes 3% of their own money you will match a total of $3,000, which is deductible as a business expense. It’s not just the business that gets deductions either. Employees, including you as a business owner, deduct what they contribute to their retirement plan.

401(k) specialists confirm business costs are deductible too!

Since a 401(k) is a benefit the costs of administrating the plan are also deductible. Naturally, the dollar costs can be considered deductible but think about the time you have to spend on hold getting answers from separate retirement plan providers or looking for advisors for your employees to educate them on financial health. There are more to costs of running a plan than just the dollar amount.

That is where Connect & Simplify shines. Be it education or getting you a real person when you call and not cheesy hold music, Connect and Simplify and the Benetrak team help you provide not only your 401(k) plan but also offer services for payroll, HR, health and other insurance benefits apart of managing your workforce through human capital management. So not only does having the 401(k) from a trusted provider save your business money on taxes but working with us saves you and your employees’ time and headaches dealing with lackluster service.

Get Retirement Solutions

Contact Connect & Simplify for all your company's 401(k) retirement plan needs. We make offering 401(k) plans easy through our knowledgeable in-house team that knows your business.