image
Credits & Deductions

The federal government has created many incentives for small and medium-sized businesses to establish and maintain a retirement plans for their employees.

Recent federal legislation was enacted to encourage small- and medium-sized employers to start retirement savings plans for their employees. This legislation allows employers with fewer than 100 employees (at least one of which must be a unrelated, non-owner) to receive a 50% tax credit (up to $500 per year) for any expenses the employer bears to maintain a retirement plan.

This federal income tax credit is in addition to the tax incentives available to lower-income workers as well as the deductibility of all employer expenses and optional contributions that might be made to the plan.

So, not only is ePlan Services 401k an extremely affordable retirement solution - these incentives create an even greater value.