401(k) Plans for Small Business Owners

There are 4 main advantages that 401k plan provides for your company making it valuable tax planning tool as well as an important employee benefit.

Gregory S. DuPont
Created by Gregory S. DuPont
On Aug 29, 2017
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Qualified Plans

Qualified plans, such as a 401(k) plan, offer excellent benefits for small business owners. These plans can provide a multitude of tax advantages that combine to deliver far more tax leverage than most people may imagine.

Here is a list of the advantages a 401(k) plan may provide for your company:
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The Bottom Line

While an obvious advantage to a 401(k) and other qualified plans is the ability to take a deduction today and postpone paying taxes until tomorrow, it is clearly not the only advantage. Even more important is the ability to invest employee retirement funds on a tax-deferred basis. As a result, whether tax rates remain the same or increase, a 401(k) plan remains a valuable tax planning tool for small business owners.