Hiring Employees

Employee Pension/Retirement Plans

Retirement plans are savings plans that offer you tax advantages to set aside money for your and your employees' retirement.

UPDATES: See Tax Information for Retirement Plans Community for the latest retirement plan updates to this Resource Guide.

Whether you choose to have a SEP, SIMPLE or other IRA-based plan or you choose to have a qualified plan, retirement plans are a great way for you and your employees to save for retirement. You can deduct contributions you make to the plan for you and your employees. Earnings on the contributions are generally tax-free until you or your employees receive distributions from the plan in later years.

Attracting quality employees can be very competitive. Having a retirement plan as part of the benefits package will make an employer a better choice over other employers.

A trained employee is a valuable commodity. Retaining those employees can be difficult. Maintaining some type of a retirement plan will help retain trained employees.

Showing your employees that you are taking a long term view for them will help morale. If a company cares for their employees, it will reap the benefits of a happier, more satisfied workforce.

Important References:

Form 1120   U.S. Corporation Income Tax Return

Publication 3998                   Choosing a Retirement Solution for Your Small Business

Publication 4118                   Lots of Benefits

Establishing a Retirement Plan:
Form 5300                           Application for Determination for Employee Benefit Plan
Instructions for Form 5300
Form 5304-SIMPLE             Simple Incentive Match Plan for Employees of Small Employers (SIMPLE) – Not for Use With a Designated Financial Institution
Form 5305-SIMPLE             Simple Incentive Match Plan for Employees of Small Employers (SIMPLE) – for Use With a Designated Financial Institution
Form 5305-S                        SIMPLE Individual Retirement Trust Account
Form 5305-SA                      SIMPLE Individual Retirement Custodial Account
Form 5305-SEP                    Simplified Employee Pension-Individual Retirement Accounts Contribution Agreement
Form 5307                           Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans
Instructions for Form 5307

Operating a Retirement Plan:
Form 5500                                 Annual Return/Report of Employee Benefit Plan
Instructions for Form 5500
Form 5500-EZ                           Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan
Instructions for Form 5500-EZ
Publication 535                          Business Expenses
Publication 560                          Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
Publication 590                          Individual Retirement Arrangements (IRAs)
Publication 4222                       401(k) Plans for Small Businesses
Publication 4224                        Retirement Plan Correction Programs
Publication 4284                        SIMPLE IRA Plan Checklist
Publication 4285                        SEP Checklist
Publication 4333                        SEP Retirement Plans for Small Businesses
Publication 4334                        SIMPLE IRA Plans for Small Businesses
Publication 4460                        The Retirement Plan Products Navigator
Publication 4531                        (k) Plan Checklist