No matter what size business you own, a corporate retirement plan is the best way to build wealth for retirement, save money on taxes, and retain talented employees. Many business owners, however, shiver at the thought of a corporate retirement plan, such as a 401(k), because they associate it with being too expensive. This is a false assumption. The reality is that its benefits far outweigh its costs. By failing to implement a corporate retirement plan for your business, you are spending money on taxes that could otherwise be going into your retirement fund. This article breaks down how implementing a corporate retirement plan for your business can pay for your retirement.
One of the main reasons your business pays taxes is because it makes a profit. The more profit you make, the higher the taxes you pay and vice versa. The bottom line is that the IRS wants its slice of your pie. Your business, however, can do one key thing to reduce its taxes: reduce profits by contributing to a corporate retirement plan. The cost of contributing to a corporate retirement plan can be expensed to your business, thus lowering your business’ profit. A lower profit, however, does not mean less money for you as the owner. The business owner almost always keeps the majority of these contributions. This means that your business’ contribution to your personal retirement account is transferred into your own pocket. You or your business do not pay taxes on those contributions, so you are investing these proceeds and eventually will be retiring on a nice beach.
We at Fogel Capital Management only recommend plans that are beneficial to the business owner, at the very least, but in most situations, employees also benefit. Additionally, skilled employees can be retained longer through a retirement plan, even if it is a simple 401(k) that only the employees contribute to. Most employees in the past have built wealth through generous pensions that obligated the employer to give them a payout throughout retirement. Consequently, most people believe a retirement plan is too expensive for their business to open. It does not have to be that way. We are here to guide you through a plan that works best for you and your business.
With over 20 years of experience, we at Fogel Capital Management have helped many employers start their corporate retirement plans with great success. Our plans are managed with analysis of data, vast knowledge, and expertise. By implementing a corporate retirement plan, you will lower your taxes, save for retirement, and retain talented employees, otherwise known as a win, win, win! Call us today at (772) 223-9686 for a free consultation to learn more about what plan options exist for your business and how to get started.