Retirement Benefits

Retirement benefits are attractive to employees because they allow them to save for their future in a pain-free way and enjoy some tax advantages while they're at it. More importantly, however, offering a retirement plan allows you to take advantage of the plan yourself.

Before you decide to create a retirement plan, make sure you:

• Understand the pros and cons of having a retirement plan.
• Know the major characteristics of the various types of plans.
• Determine your goals for having a plan.

If you think you want to offer a retirement plan. If you do decide that you want to offer a retirement plan, you are definitely going to need some professional advice and guidance. Pension rules are complex, and the tax aspects of retirement plans can also be confusing.

But before you call your accountant and attorney, check out our discussions of some of the appropriate plan options for small business so you can make some informed choices and decisions before you contact them.

Then after you've assessed your needs and goals, some plans you can choose from, as a small business, are:

• profit-sharing plans
• 401(k) plans
• simplified employee pensions (SEPs)
• SIMPLE plans
• target benefit plans
• Keogh plans (these plans are for self-employed people in sole proprietorships, limited liability companies, or partnerships — not for businesses that are incorporated)