Author Topic: Ideas Needed - How to convince company to offer a retirement plan for employees!  (Read 1221 times)

Secretly Saving

  • Bristles
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Has anyone successfully convinced your company to start offering retirement plans (401k, 403b or 457s) when the company previously did not offer one?If you've had success, I'd love to hear what arguments you used and how you worked your magic.

Or from anyone else who has some ideas to help be as compelling as possible. 

robartsd

  • Magnum Stache
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  • Location: Sacramento, CA
If it is a small company that the owner works in directly, I'd target helping the owner understand the tax advantages a retirement plan could have for the owner. If it is a lrager company, I'd look for other employees who want an employer sponsored retirement plan to present a request for establishing one as a group. Either way, the company benefits by being more efficient at compensating smart employees who are good at planning - the tax advantages of the retirment plan to the employee have virtually no cost to the company but do factor into the employee's decision to work there.

Zacharias

  • 5 O'Clock Shadow
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  • Posts: 29
If it is a small company that the owner works in directly, I'd target helping the owner understand the tax advantages a retirement plan could have for the owner. If it is a larger company, I'd look for other employees who want an employer sponsored retirement plan to present a request for establishing one as a group. Either way, the company benefits by being more efficient at compensating smart employees who are good at planning - the tax advantages of the retirement plan to the employee have virtually no cost to the company but do factor into the employee's decision to work there.

Would you mind summarizing the tax advantages to an employer? I'm a little narcissistic. To this point, I've only ever looked at the tax advantages to me as a participant.

robartsd

  • Magnum Stache
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  • Posts: 2897
  • Location: Sacramento, CA
Would you mind summarizing the tax advantages to an employer? I'm a little narcissistic. To this point, I've only ever looked at the tax advantages to me as a participant.
If the owner works in the business (rather than just invests in the work of other people), the owner would have the same tax advanraged opportunities as the other employees if they participate in the retirement plan. Without participating in the plan, owners benefit from having a retirement plan inasmuch as their employee's benefits due to tax law are considered by employees to be part of their overall compensation - the cost of administering the plan is likely much lower than the benefit the participating employee receives.