Tax and Payroll Preparation Services
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Creating an effective retirement program
that meets the needs of employees and owners is a very complex issue. Not only are business strategies involved, such as how to motivate employees to stay with the company, but a host of complex tax rules are present.

To complicate matters even more, there is often a significant need for you, the owner, to maximize your own savings to make your retirement golden. Here are some of the issues you need to consider:

Type of Plans

   A defined benefit plan targets the future retirement cost and requires current dollars to fund the future benefits. These types of plans are very costly if the employee population is older because there are fewer years available until retirement to create the retirement benefit. On the other hand, if the employee average age is low and the owner is older, a defined benefit plan might be very effective.

   A defined contribution plan (for example, a 401(k) plan) creates a retirement benefit based on the extent that current contributions grow over time. These plans are usually based on a percentage of your employee’s salaries.

There are many other matters to consider when designing a retirement program, such as cost, integration with Social Security, whether you should have an age-weighted plan, investment strategies and investment management.


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