April 1, 2021 If you're a small employer or self-employed, you may be busy trying to grow your business and haven't thought about starting a retirement plan. Adopting a retirement plan benefits both the employer and employees. Employer contributions are tax deductible. Assets in a plan grown tax-deferred to retirement. A plan helps attract and retain employees. Small employers may receive a tax credit for new plans of up to $5,000/year for three years for the cost of setting up a new plan. A Saver's Credit of up to 50% is available for contributions made by low- to moderate-income employees to IRAs or retirement plans. For more information on key features of plans for small employers, check out the plan comparison chart in Choosing a Retirement Solution for Your Small Business PDF and our small plan resources webpage.
