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Michael A. Milazzo, CLU, ChFC
Registered Principal
The Meridian Financial Company
3350 Club Villas Dr SE, Unit #1303
Southport, NC 28461
Phone: 631-979-4223
Fax: 910-854-0002
Email: meridian@ae.cadaretgrant.com
Website: www.merfinco.com
January/February 2024
Add a Retirement Plan to Your Employee Benefits Package
As a small business owner, you recognize the need to recruit and retain talent. While good wages and health insurance typically are the most important benefits for workers, business owners shouldn’t discount the advantages of helping their employees save for the future.
Benefits for Both
Offering a retirement plan as an employee benefit can give you an edge in hiring and retaining talented workers and help your business stand out among the competition. Morale and work ethic may improve when employees feel your business has a stake in securing their future. And, you may be able to save for your own retirement at the same time.Some Plan Options
Business owners have several options for offering a retirement plan. Your financial professional can help you choose one that works for your business.1. SIMPLE (Savings Incentive Match Plans for Employees) IRA or 401(k) are limited to businesses with 100 or fewer employees. Employers make non-elective contributions of 2% of compensation to each eligible employee; or match individual contributions up to 3% of compensation. The plan is easy and inexpensive to set up and operate and has no filing requirement.
2. SEP (Simplified Employee Pension Plans) are available to any size business to set aside money in retirement accounts for the owner and employees. The business owner contributes up to 25% of compensation to a SEP IRA. Employee contributions are not allowed. The plan is easy to set up and operate and administrative costs are low. There are no filing requirements, and annual contribution amounts are flexible.
3. 401(k) Plans enable employees to contribute a portion of their wages to individual accounts. Salary deferrals are excluded from taxable income (with the exception of designated Roth deferrals, which are made after tax). Employers can contribute to employees’ accounts. The employer must file paperwork every year to show the plan is in compliance with IRS regulations.
Tax Savings
Employer contributions to a retirement plan are deductible from business income, lowering your annual tax liability. You also may be able to claim a tax credit for some of the necessary costs of starting a SEP, SIMPLE IRA, or qualified plan.CONTACT US
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Securities and Advisory Services offered through Cadaret, Grant & Co, Inc, a Registered Investment Advisor and Member FINRA/SIPC. The Meridian Financial Company and Cadaret, Grant & Co., Inc. are separate entities. I am registered to sell Securities in the following States: NY, NJ, PA, NC, FL, ID.
The Meridian Financial Company and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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