Have you ever purchased a product that provides more than what you originally thought? One day I was driving on the highway when an object struck my windshield leaving a small crack. As the day progressed the crack began to spread, as did my frustration thinking about my need to pay for a new windshield. For some silly reason, I forgot that windshield replacement was part of my auto insurance policy. I don’t think about my auto insurance very much. It is one of those necessary expenses that allows me to keep my car on the road. Many of our clients see a ROBS Retirement Plan in a similar way. Establishing the retirement plan is necessary if you want to fund your business using a retirement rollover. And that is all the Plan does, right? Some individuals are so caught up in the dream of starting a business and obtaining the necessary funding that the Retirement Plan is just a necessary evil. Like thinking the sole purpose of car insurance is to keep your car on the road. That is so far from the truth. A ROBS Retirement Plan is not just for business funding!
The ability to fund a business through a Retirement Plan is only a small piece of what a company sponsored retirement plan can do, and to be quite truthful, should not be the only purpose a retirement plan is set up.
A company retirement plan is a retirement savings benefit available to all eligible employees in the company. Retirement plan benefits provide many perks for both the business and its employees.
What are some benefits of having a Retirement Plan?
Business Benefits
- Employer contributions are tax-deductible.
- Plan options are flexible.
- Retirement plans can attract and keep better employees.
- New Plans may be eligible for tax credit
Employee Benefits
- Retirement investments grow tax deferred.
- Regular contributions can grow to significant retirement savings.
- Employees can improve financial security in retirement.
So, when thinking about using a ROBS plan to fund your business, also think about all the additional benefits that come along with having a company retirement plan!
If you have questions about how a Retirement Plan can benefit you, your business, and your employees, contact your Benetrends Sales Consultant. A ROBS Plan is more than just Business Funding.
Chuck Brodany, Director of Client Services