Candidates for highly skilled positions often receive multiple offers from companies within the same industry. Companies that don’t offer a retirement plan may not be positioned well to recruit top talent.
Businesses with fewer than 100 employees are eligible for a tax credit equal to 50% of the cost to establish and administer a qualified retirement savings plans, up to a maximum of $500 per year for the first three years the plan is in effect.
Creating a retirement plan through the business provides owners a significant incentive to save for retirement. They are able to save up to the annual contribution limits and contributions grow tax-deferred until withdrawn in retirement years.