Retirement plans for small business owners
Accounting and Finance
Are companies right in cutting retiree medical benefits? Although many cite a 1993 accounting rule as the reason, the author mostly blames rising health care costs and an increase in expected retirees. He reviews the methods companies have used to cut benefits, and analyzes whether it was really profitable--or prudent. Some conclusions: To avoid public relations and legal problems, the author suggests cutting benefits for future--not current--retirees. And if you want to improve your firm's financial statements, consider setting up a voluntary employee benefits trust (VEBA). (C) 1999 John Wiley & Sons, Inc.
Burilovich, L., & Bunsis, H. (2014). Retirement plans for small business owners. The CPA Journal, 84(1), 60–64. doi:10.19030/jabr.v16i4.2057