Group Retirement Plans: The Group Benefit That Benefits Everyone
Qualified Group Retirement Plans are employer-sponsored retirement savings plans that give you, the business owner, and your employees tax incentives to save for retirement.
Employees who participate in Qualified Group Retirement Plans save for retirement by making regular contributions to an approved investment account, and taxes– on both their contributions and the growth of their investments– are deferred until they either withdraw their funds or reach retirement age.
It’s a great deal for participants– they save on taxes now, grow their savings in the market now, and pay the tax bill later, when they will likely be in a lower tax bracket because they have retired and aren’t earning a full paycheck anymore.
It’s a great deal for you as employer, too– you get tax incentives for providing this benefit and matching employee contributions, so you save on taxes now, too. Plus there are other benefits (more on that shortly)…
Group retirement plans encourage everyone to start early and get in the habit of saving regularly for retirement, which leaves you all better off in the future. And they reduce everyone’s tax liability now, so you all have more to spend on other things during your prime earning and spending years, even while saving for retirement.