An IRA Plan: You Owe it to Your Employees, and Yourself!

Message From the President

A few weeks ago, I broached the subject of retirement planning from the individual perspective. Now let's take a look at the other side of the equation.

 Small business owners, I'm talking to you this time around.

If you haven't got one set up already, you owe it to your employees, and yourself, to at least look at the possibility of instituting some sort of IRA program.

As an employer, there are plenty of up-sides. Employer contributions may be tax deductible and tax credits and other incentives for initiating a plan may help shrink costs. (Always consult your tax advisor.) But most importantly, your business will benefit in other ways. It can help attract new talent, help retain your existing talent, and you will probably even sleep easier!

The number of options is an eye-opener in itself. They range from SIMPLE IRA plans to standard 401(k) plans to profit sharing. If you're in my neck of the woods, stop into a Bank of Idaho branch. We've got staffers who can help you find something that fits.

Here's my key piece of advice: make enrollment easy.

Before you lay out a plan for your employees, make sure you and your administrators understand things well enough to make the sign-up process too easy to refuse. The more people who take you up on your offer, the more worthwhile it is. I know, increasing the odds of having to shell out more matching funds may seem counter-intuitive, but I promise you, it's worth every penny. If it keeps your crew from seeking greener pastures, it's money well spent.