Posts Tagged ‘traditional’
Posted in 
Tags: 
Tax Rules For Iras
January 1st, 2008
Question: Tax benefits for small businesses offering IRAs in Louisiana?
My employer is a small business owner in Louisiana. He has all of a sudden started offering an IRA for us. He pretty much is strong arming all of us into starting an account. The strange thing is, this is a restaurant and he is offering to match 3% of what we put in. He is a tightwad of all tightwads so I was wondering why he would do this because I know it’s not out of the goodness of his heart. My question is does he get a tax credit or a tax benefit of some sort by offering us this? If so, how much per person? Where can I see the rules and laws about this?
Answer: More than likely he’s offering it because he gets benefit from it personally as well. While there are some tax benefits in offering Section 125 plans, the tax benefits are less than the cost of doing so in the first place.
Attracting and keeping quality employees is important to businesses. Few businesses stay in business for very long if they don’t realize that and take it to heart.
FWIW, few businesses that don’t act like tightwads stay in business for very long either.
How to get – Tax Free Income, without all the risk & rules.