One of the best ways for small business owners to recruit and keep loyal employees is to offer a retirement plan. Not only are retirement plans a great way to reward employees, they can also result in some nice tax incentives for small business owners. When it comes to making financial decisions for your Fort Collins business, trust the accountants at Steven J. Wick.

Some of the best types of retirement plans that are eligible for a tax credit include:

1. Solo 401(k) Plans: These plans are only suitable for those business owners who work by themselves or with just their spouse. This type of 401(K) is extremely beneficial because it allows business owners to save as both an employer and an employee.
2. Defined-Benefit Plans: A defined-benefit plan is an employer-sponsored retirement plan that is based on a formula that takes into account the employee’s employment and salary history with the company.
3. SEP Plans: This type of retirement plan can be set up by a business owner, including a self-employed person. An SEP is an IRA-based retirement plan where employers can make tax-deductible contributions to an account on behalf of their employees.
4. SIMPLE IRAs: This plan, like the SEP, can be set up by a business owner or self-employed individual. In this case, though, an employee can make contributions to their own account from their pre-tax salary. This means the tax is delayed on the money until it is dispersed. This plan is best for businesses with less than 100 employees, and no other type of retirement plan in place.

To learn more about the benefits of offering your employees retirement plans, contact the accountants at Steven J. Wick today. One of our Fort Collins CPAs would be happy to sit down and answer any questions you may have about retirement plans and tax credits.