Employers should consider the advantages of offering a retirement savings program for themselves and their employees. Contributions are tax deductible and can serve to reduce their taxable income, and earnings are tax deferred.

There are also competitive and quality employment advantages for a business when it offers such a program. Many small businesses feel that having a retirement savings program allows them to attract and retain high-quality employees who give them a competitive advantage in the global marketplace. Small business owners may personally benefit by offering a retirement plan that covers employees. They may be able to save more money for their own retirement if they establish a retirement savings arrangement for employees.