Spend it where you want
Affordable 401(k) plans become even better by reducing your taxes – plan expenses, including contributions, are tax deductible and you can receive tax credits for starting a plan. You can save significantly more when you add a Cash Balance Plan to your 401(k).
Deductible expenses
Many plan expenses including company contributions, setup fees, and administrative costs are generally deductible by the business. These business expenses reduce taxes.
Upgrade Your 401(k)
Since a Cash Balance Plan allows larger contributions, your deductible expenses can also be much larger when you add a Cash Balance Plan to your 401(k). Each small business owner can save over $135,000 in taxes each year.
Increased tax credits
Small businesses can claim a tax credit of up to $5,000 each year for 3 years. The tax credit can offset 100% of eligible costs including setup, administration, record-keeping, advice, and employee education. Businesses can claim an additional $500 each year for 3 years by adding an auto-enrollment feature.
