1.
What is a major non-tax advantage to set up a qualified plan?
Solution
A qualified plan is established by an employer to provide retirement benefits for its employees
and their beneficiaries.
Following are some of the non tax advantage to set up a qualified plan:
1. Employers are able to attract and retain high-quality employees. A qualified plan may be the
tiebreaker that wins over a skilled person who is offered relatively similar compensation
packages from different potential employers.
2. If the business has high start-up costs or little cash on hand, one can use a retirement plan to
supplement your compensation package.
3. Retirement benefits may give you a recruiting advantage.
4. If the plan is based on profits, the plan may enhance employee motivation and productivity.