CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Christopher R. Hibbard, ChFC®, CRPC®, CFS®
Vice President, Wealth Management
Teachers Investment Services
Located at Teachers Federal Credit Union
5439 Sunrise Highway
Holbrook, NY 11741
Phone: 631-698-7000 Ext. 6020
Email: christopher.hibbard@lpl.com
CRPC conferred by College for Financial Planning.
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.505521-2
Christopher Hibbard is a financial advisor with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Teachers Federal Credit Union (TFCU) and Teachers Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Teachers Investment Services, and may also be employees of TFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of, TFCU or Teachers Investment Services. Securities and insurance offered through LPL or its affiliates are:
The sender 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.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.