7. Retirement – a “three-legged” stool Read the following excerpt from the Social Security Administration’s website: “Social Security was never meant to be the sole source of income in retirement.” A comfortable retirement is based on a “three-legged” stool of Social Security, company-sponsored retirement plans and personal savings. 3 Revised 1/26/2011
8. Pre-Tax Growth vs Post-Tax Growth *Assuming 25% tax rate, 10% rate of return, compounded only monthly 4 Revised 1/26/2011
17. Retain Current Employees If you’re not offering a retirement plan to your employees, don’t be surprised to lose them to a competitor that does! Misconceptions about 401(k)s could cost Small Business Owners By Lynn Gresham Forty percent of workers in small companies say they would leave their job for one that provided a 401(k) plan, according to a survey conducted by Harris Interactive and sponsored by ShareBuilder 401(k), a subsidiary of ING Direct. . . . 10 Revised 1/26/2011
45. Allows employees to take certain out-of-pocket expenses on a pre-tax, rather than a post-tax basis:Medical Dental Vision Over-the-counter items With a Dr’s Prescription Dependent Care 20 Revised 1/26/2011
52. Workers’ Comp Savings (CA only)APPROX. 12% SAVINGS ON PAYROLL TAXES APPROX. 25% - 45% SAVINGS ON EXPECTED GOODS AND SERVICES 21 Revised 1/26/2011
53. FSA has 3 “buckets” Plan Features 3) Out-of-pocket medical, dental, vision, and over-the-counter expenses Insurance premiums 2) Dependent Care expenses 22 Revised 1/26/2011