Small Business

Offering a retirement plan package can be an intimidating proposition for many small businesses. Between the time, reporting, and cost requirements there appear to be many obstacles separating small businesses from their desires to help their employees prepare for the future – but there doesn’t have to be. No matter what your company’s specific needs or situation, LGT has the option that’s right for you. For example, a savings incentive match plan for employees or a simplified employee pension plan can offer you a practical, tax favored alternative and eliminate the complexity, paperwork, and extra expense of a standard employee retirement plan.

When choosing to launch a tax-qualified retirement plan it’s important that you do not compromise. The right pension or profit-sharing plan allows you to get the best of both worlds by providing attractive retirement benefits to your employees and significant tax incentives to your company. However, there can be high costs and heavy administrative demands when establishing and maintaining a tax-qualified plan that can make them prohibitive for smaller businesses.

However, LGT has solutions for these smaller businesses as well.

• Allow your employees to build a retirement fund on their own by offering them participation
  in a no-frills individual retirement account (IRA) with limited annual contributions.
• Savings Incentive Match Plan for Employees (SIMPLE)
• Simplified Employee Pension plan (SEP)

Using any of these alternatives can reduce the costs and administrative burden of a standard employee benefit plan, while still delivering you, your company and your employees considerable tax advantages. Implementing either the SIMPLE or SEP plans allows you to steer clear of the drawbacks inherent in either tax-qualified plans or individual IRAs. Both of these plans make it possible for you to provide a company retirement plan without the complexity and cost that is normally associated with a standard employee benefit plan. SIMPLE and SEP plans also allow for greater contributions than are possible through individual IRAs.

For your employees you will be offering an attractive and valuable new benefit, and for your company you will be providing a simple and cost effective alternative that still allows for sizable deductions for company contributions. With LGT’s retirement plans for small businesses you get the best of both worlds.

For more information on Small Business, don’t hesitate to contact one of our professionals today.