Set Up a 2007 Business Retirement Plan Now!

Did you know…

                       

• That retirement can last for 30 years or more?
• That a common rule to follow is that retirees will need up to 80 percent of their annual income today to retire comfortably?
• That the average amount paid monthly by the Social Security Administration in the form of a

benefit is $962.70[1]?

There is still time to establish a retirement plan before 2007 ends. A retirement plan allows you to invest for the future while providing many benefits for you, your business and your employees. As a bonus, you and your employees may receive significant tax advantages and other incentives.

Benefits for Your Business:

• Employer contributions made on behalf of eligible employees are tax-deductible.
• Businesses may receive a tax credit of 50 percent on the first $1,000 in administrative and/or education costs.
• Assets in the plan grow tax-deferred.
• A retirement plan can attract and help retain good employees, consequently reducing your cost of training new employees.

Employee Benefits:

• Federal income tax on contributions in the retirement plan is deferred until distributed.
• Investment earnings that accumulate in the plan are not taxed until distributed.
• Retirement assets are eligible for rollover to other employer plans.
• Contributions can be made automatically through payroll deductions.
• A tax savers credit up to 50 percent is available to individuals within certain income limits.
• In many cases, long-term retirement goals are more likely to be met through early and full participation in a retirement plan.
• Qualified contributions reduce employees’ taxable earned income.

If you need any assistance please do not hesitate to contact our law firm.

 

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[1] U.S. Social Security Administration Office

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[1] U.S. Social Security Administration Office