401(k)s can be good for your company!
Tax breaks for your business
Any company costs associated with operating a 401(k) plan can be deducted at tax time – including
any contributions your company makes to the plan.
Plus, if you have at least one employee, and this is your company's first 401(k) plan, your business
is eligible for an annual federal tax credit of $500 for each of the first three years. That's a $1,500
extra tax break!
A tool for attracting employees
There's been a revolutionary shift in the mindset of employees over the last few years. Workers today
care just as much about their work environment and the employee benefits available to them as they do
about the size of their paycheck. In fact, research shows that 40% of employees would leave their current
employer for a similar job if it offered 401(k) benefits.
Whether you're recruiting or seeking to keep your current employees, a 401(k) is a terrific incentive.
According to industry surveys, most employees work harder and stay on the job longer once a 401(k) is
In the past, only large corporations could expect to realize this benefit from their retirement programs.
But with the introduction of plans like the ShareBuilder 401k, small companies are now equipped to compete
on a level field for the employees they need.
Plenty of flexibility
An on-demand 401(k) is the most flexible type of retirement plan there is. As the plan trustee, you
can determine who's eligible to participate, whether your company will match contributions, how long
before employees become vested, and more. You can even tie company goals to 401(k) incentives.
401(k)s are portable, too – which means you can roll it over if you decide to start another company,
or give it all up and work for someone else.
Next: Read about owner benefits or see ShareBuilder
401k's plan options.