Can enhance benefits to older employees. Can offer higher benefits to top management with lesser tenure. Employer can maximize tax deduction. Salary deferrals by employee are pre-tax. Employer contribution is discretionary, not required.
Employer can elect to make matching contributions.
Employer is entitled to a tax deduction for the amount of the contribution. Self-directed or managed by an investment officer within participant s guidelines. Low administrative costs. Flexibility to adjust contribution levels on an annual basis. Top of Page IRA Rollover Taxes deferred on income produced by the lump sum.