Tax Advantages?
A retirement plan has significant tax advantages:
- Employer contributions are deductible from the employer’s income,
- Employee contributions (other than Roth contributions) are not taxed until distributed to the employee,
- Money in the plan grows tax-free, and
- Distributions may be eligible for tax-favored rollovers or transfers into other retirement programs
- Employer plan cost have potential tax deductions. Consult with CPA.