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Employee Retirement Plans for Businesses: How 401k and Other Plans Can Benefit Your Company

One thing is clear. The right employees can make all the difference when it comes to running a successful business. A strong team can help you add efficiencies, build a loyal customer base and even bring innovation to your products and services. But how do you attract the right talent?

The Benefits of an Employee Retirement Plan

There are many benefits to having an employee retirement plan. A retirement plan can help you attract and retain talented employees, as well as provide them with a financial safety net in retirement. 

According to BenefitsPro, 36% of employees would consider moving to a new job if the new role offered improved retirement benefits.

If you’re thinking about offering a retirement plan to your employees, there are a few things you should keep in mind. First, you’ll need to choose the right type of retirement plan for your business. There are many different types of retirement plans available, and each has its own set of benefits and drawbacks. 

Once you’ve chosen a retirement plan, you’ll need to make sure it’s properly funded. Employees will contribute a portion of their salary to the retirement plan, and you’ll need to make sure there are enough funds available to cover their retirement benefits. A CPA can help you determine how much you should contribute to the retirement plan and how to invest the retirement funds.

A well-executed employee retirement plan can also:

Reduce turnover and new hire training time: New employees will be more likely to stay with your company if they know you offer retirement benefits. This can save you time and money in the long run by reducing turnover and new hire training costs.

Offer ways to reward employees beyond pay raises: Employees who feel like they are being rewarded for their years of service are more likely to be loyal to your company. Offering retirement benefits such as matching and vesting is a great way to show your employees that you value their contributions to your business.

Help you plan for your own retirement: By contributing to an employee retirement plan, you can also save for your own retirement. This can help you stay financially secure in retirement and avoid having to rely on Social Security benefits.

Provide tax benefits to your business: Employer contributions to a retirement plan are tax-deductible, and employees do not have to pay taxes on the retirement benefits they receive. This can save your business money in the long run.

Types of Employee Retirement Plans

There are a number of different types of employee retirement plans available to businesses. The most common type of plan is the 401k, which allows employees to contribute a portion of their salary into a tax-deferred account. 

In addition to 401k plans, other popular retirement plan options include 

  • 403b plans
  • 457 plans
  • pension plans 

Each type of plan has its own benefits and drawbacks, so it is important to speak with a financial advisor to determine which plan is right for your business.

How to pick the best retirement plan for your business

When choosing a retirement plan for your business, there are a number of factors to consider. The first is the type of business you have. If you are a small business owner, you may want to consider a SIMPLE IRA or SEP IRA, which are both easy to set up and maintain. If you have a larger business, however, you may want to consider a 401k or other more complex plan.

You will also need to consider the size of your business and the number of employees you have. If you have a large business with many employees, you will need to choose a retirement plan that can accommodate all of your employees. You should also make sure that the retirement plan you choose is compliant with all applicable laws and regulations.

Once you have considered all of these factors, you will be able to choose the best retirement plan for your business. Remember, employee retirement plans are an important part of attracting and retaining talented employees. A well-designed plan can also provide a number of tax benefits for your company!

What Other Financial Elements Should Be Discussed

In addition to retirement planning, there are a few other financial elements you should discuss with your CPA. These include estate planning, investment planning, and risk management. By discussing all of these factors together, you can ensure that your financial plans are comprehensive and aligned with your goals.

Our Partnership with Avantax Retirement Plan Services

The good news is that implementing an employee retirement plan no longer needs to be a challenge. We have partnered with Avantax Retirement Plan Services (RPS) for a comprehensive solution to incorporating a retirement plan into your business. With RPS, you and your employees can expect to receive the highest level of service and fiduciary standards.

Your dedicated team of tenured plan consultants will provide a turn-key qualified retirement plan solution that delivers all aspects of investment management, record keeping, employee enrollment and compliance services for your business. We also offer employee education and personal investment guidance to help your team reach their goals for retirement.

Let us take the worry out of offering an employee retirement plan so you can focus on your business. Visit our website to learn more about our integrated retirement plan services through RPS. Together, we can help you elevate your business with comprehensive solutions that meet all your financial needs.

Investment advisory services are offered through Planning Partners℠. Commission-based securities products are offered through Avantax Investment Services℠, Member FINRA (, SIPC ( Insurance services are offered through licensed agents of Avantax Planning Partners. The Avantax entities are independent of and unrelated to SME CPAs. Please visit for more information.

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