As a small business owner, you may be looking for ways to attract and retain top talent. One effective strategy is to offer a retirement plan, such as a SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account).
As a financial planning firm, Oxford Financial Planners of Durango, Colorado understands the importance of retirement savings for both small business owners and their employees. Our team of financial advisors can help you understand the ins and outs of SIMPLE IRA plans and how they can benefit your business.
One effective way to support your employees’ retirement goals is by offering a SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account). A SIMPLE IRA is a type of retirement savings plan that is designed specifically for small businesses with 100 or fewer employees. It allows employees to contribute a portion of their earnings to the plan on a tax-deferred basis, and it also requires employers to make contributions on behalf of their employees. These contributions can be in the form of matching contributions, where the employer matches a certain percentage of the employee’s contributions, or non-elective contributions, where the employer makes a set contribution for each employee regardless of whether the employee makes any contributions themselves.
One of the biggest benefits of offering a SIMPLE IRA is that it can help small businesses retain and attract top talent. When employees have access to a retirement savings plan, they are more likely to stay with the company for the long term. This can help reduce turnover and save the business the time and money it takes to hire and train new employees. In addition, many job seekers today are looking for companies that offer retirement savings plans, so offering a SIMPLE IRA can make your business more attractive to potential hires.
Another benefit of a SIMPLE IRA is that it can provide tax advantages for your business. Employer contributions to a SIMPLE IRA are tax-deductible, which can help lower your business’s tax bill. In addition, a SIMPLE IRA is a cost-effective option compared to other types of retirement plans, such as 401(k)s, because it has low start-up and administration costs.
If you are a small business owner in Durango, Colorado looking for an effective way to support your employees’ retirement savings, a SIMPLE IRA is definitely worth considering. At Oxford Financial Planners of Durango, our team of financial advisors can help you understand the ins and outs of these plans and how they can benefit your business. We can provide the guidance and support you need to set up and manage your SIMPLE IRA accounts. Contact us today to learn more.