Offering the right benefits package can help your company attract and retain quality employees. There are several types of employee retirement plans to choose from, and it is important to select a plan that best serves your company.
Types of Plans
Each type of plan has its own set of pros and cons. Available plans currently include:
- SIMPLE IRA
There are several factors you should consider when choosing a retirement plan, such as:
- Number of employees
- Company contributions
- Withdrawal penalties
- Growth rates
- Tax breaks
The number of employees at your company will dictate the type of policy you are eligible for. Plans that are ideal for a small business are either unavailable or not ideal for companies that operate on a large scale.
Another important factor to consider is whether your company will be contributing funds to employees’ retirement plans. Only some types of plans allow for employer contribution.
If early withdrawals seem likely, then consider finding a plan that allows workers to draw funds with minimum penalties.
Research the interest rates, dividends, and any tax breaks each plan offers to ensure the best gains.
Finding the right retirement plan for your company may take time, but it is worth it. A good plan can lower employee turnover rates and boost morale.