For decades, large companies have known of and benefited from the tax advantages of providing a 401(k). Unfortunately, most small businesses haven’t been able to afford the added cost and administrative burden involved in providing a traditional 401(k) so these incredible advantages have alluded them.

Until now!

Great 401(k) options have recently emerged for small businesses. Now it’s easy for a small business owner to provide a hassle-free and inexpensive 401(k) – and finally reap the tax advantages. The tragedy is that too many small employers are unaware of the advantages they’re missing.

Let’s look at 3 financial advantages of offering a 401(k) as a small business.

1. Personal Tax Advantages of a 401(k)

By lowering taxable income, the 401(k) is a great way for business owners and employees to lower their taxes today. A basic 401(k) lets you and your employees save $18,000 a year pre-tax ($24,000 if you’re over 50).

But, it gets better. If you add a profit sharing plan, you could sock away up to $53k pre-tax (or $59k if you’re over 50).

This all lowers taxable income today, and could also drop you into a lower tax bracket (sorry Uncle Sam!).

2. Business Tax Advantages of a 401(k) for Small Businesses

A 401(k) can also provide meaningful tax write-offs for your company. To start with, all administrative costs of providing a 401(k) are a tax deduction. The same goes for any contributions the company makes (matching employee contributions, profit sharing plan, etc.). The government has provided these incentives to encourage saving for retirement — so you’d be helping your employees save for their futures and reap the tax benefits.

**3. Protections for your savings with a 401(k) **

401(k) plans are classified as “qualified plans” by the IRS, which means that your 401(k) savings are protected from lawsuits, bankruptcies, and creditors. IRAs, taxable brokerage accounts, and bank accounts are not so lucky. Simply put, if you want to protect your assets, a 401(k) is a smart choice.

Today’s next-generation 401(k) options make it easy for a small business owner to provide a hassle-free and inexpensive 401(k). And that means a small business owner can finally reap all of the tax advantages of providing a 401(k).

Want to keep up with the all the ForUsAll news? Like ForUsAll on Facebook, or follow ForUsAll on Twitter. Speaking of news, the New York Times has a great article (in our opinion) about how small businesses can offer 401(k) plans.