Qualified Retirement Planning Services
By: Karen Rinehart, CFP®
The Henssler Financial Group Position Paper

The Hensler Financial Group Wealth Management

One of the most overlooked business deductions is "qualified retirement planning service." If the employer provides qualified retirement services for employees, this service is excludable from the employee's gross wages. Many individuals do not take advantage of this fringe benefit.

Since many individuals do not take advantage of this deduction it is no surprise that many small-business owners are not aware or do not take advantage of paying for qualified retirement planning services for their employees. An employer can pay for employees qualified retirement planning services and exclude this from employee's gross wages. Qualified retirement planning services is defined as any retirement planning advice or information provided to an employee and their spouse by an employer maintaining a qualified employer plan. This rule went into effect with the Economic Growth and Tax Relief Reconciliation Act of 2001. Small-business owners are considered employees of their business, therefore, small business owners can write off qualified retirement services through their businesses.

This can be a very effective tool to compensate employees without increasing the employee's wages. This is a good option for the employer and the employee in that neither will have to pay additional FICA taxes. It is also a valuable service to employees to educating them about the benefits of saving towards a retirement plan and helping them reach their retirement goals.

For additional information contact your tax adviser or contact The Henssler Financial Group at 770-429-9166 or comments@henssler.com.

All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing.

 

 
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