A good retirement plan can be the difference between a comfortable old age and slipping into poverty – yet one in four U.S. working adults has no retirement savings.
More and more employees are looking ahead and wondering what their future holds. Less than half of workers are confident they’ll be able to retire when they want.
48% of millennials expect their 401(k), 403(b) or IRAs to be their primary source of retirement income.
Workplace retirement plans are the major way that people save successfully. Without a workplace retirement plan, fewer than 10% of workers contribute to retirement savings on their own. It’s not just older workers who care about retirement.
90% of millennials and Generation X employees and 87% of baby boomers all believe that a 401(k) plan is an important employee benefit.
Government assistance and tax credits
According to the IRS, small businesses may be able to claim a tax credit for some of the costs of starting a retirement plan if:
- You had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year.
- You had at least one plan participant who was a non-highly compensated employee.
- In the three tax years before the first year you’re eligible for the credit, your employees weren’t substantially the same employees who received contributions or accrued benefits in another plan sponsored by you, a member of a controlled group that includes you, or a predecessor of either.
Take a look at the IRS website or talk with your tax advisor for full details.