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401(K)
401(k) for Small Businesses
Huge Benefits for Business Owners
Since a 401(k) is a qualified deferred retirement account, it provides immediate tax savings for the employer and the employees. In the case where those are the same individuals, that can amount to double dip tax advantages. So if you are a small business that is looking for more write-offs now or in the future, establishing a 401(k) is one of the best and easiest ways to realize those savings.
It is also a way to super-charge retirement savings. If you are someone who invested most of your net worth into your business to get it going, a small business 401(k) provides one of the best vehicles to get your retirement savings back on track. For example, max annual contribution for an individual in 2019 is $19,000. Max contribution for both employee and employer is $56,000. That means that an individual can save an additional $37,000 in his retirement account!!!
A 401(k) is a great talent retention and attraction vehicle. Four in five employees indicate they want benefits and perks more than a pay raise, and a 401(k) ranks in the top five requested benefits, according to a recent Glassdoor survey Employees look to a good 401k and matching when they are considering employment choices. There are cases where employees have resigned with one company and joined another because of better 401(k) (among other reasons of course)
Aymond Agency partners with American National to provide a very competitive and flexible 401(k) plan. Our plan is can be more flexible and carry lower administrative fees than many other plans. It is designed specifically for small businesses. There is also a "Safe Harbor" option useful when the employer does not want his contribution limit tied to that of the employees.
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