Small dental practices today, even the successful ones, are often strapped for cash. That makes offering golden egg benefit packages to employees difficult no matter how much you’d like to be able to do so. Sadly, many dental business owners fail to consider offering 401(k) plans for fear they cannot make it happen.
Despite these reservations, nothing could be further from the truth. Here are a few reasons — both financial and strategic – your small business should, in fact, be offering employees 401(k)plans.
Attract High-Quality Employees and Keep Them
If you really want your dental practice to grow in the coming years, then you need top quality employees to make that growth possible. Benefits, like 401(k) plans, are often the deciding factor for employees who are sitting on the fence for an opportunity to join. Offering a solid 401(k) benefit plan to employees is not only about attracting high-quality employees, but also about retaining them once they work for your business. People who are happy with their employment situation are less likely to leave.
More Affordable Than You Realize
Offering a 401(k) plan as an option is more affordable for small dental offices (of any size) than you think it is. The costs involved in offering this benefit – one that employees place such a premium on – are relatively low compared to operating costs and other benefit packages you could offer. Reason being: in addition to the tax credit, employer contributions to a 401(k) plan are tax-deductible, making the plan even more affordable to offer employees. Further, investment gains and elective deferrals aren’t taxed until distribution.
Less Time-Consuming Than You Anticipate
Another reason many dental offices put off offering important benefits like a 401(k) plan is that they believe it will rob their business of countless hours of labor administering the plan month after month. However, it takes very little effort to get the program set up and ready to operate, as well as administer. Most 401(k) plans today are “paperless”, and are strictly web-based making their administration streamlined and efficient.
Secure Your Own Retirement Finances
All too many small dental practice owners neglect their own personal retirement security for the sake of their business, whether that’s due to financial reasons or time constraints. But doing so can be a big mistake, especially when they have no other avenues for retirement income. A tax-deferred 401(k) plan is an effective vehicle to not only help your staff with their retirement finances, but you.
The real questions business owners need to ask is why wait. When benefits, like 401(k) plans are so inexpensive and easy to implement, what are you waiting for? The next step is to talk to your accountant or financial advisor today.