There are a number of retirement plan options for small business owners.
A Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA plan is another IRA-based retirement plan option for small businesses.
Only businesses with 100 or fewer employees may establish a SIMPLE IRA plan.
For traditional accounts, your contributions reduce your income in the year you make them, and therefore will be taxed as regular income.
With Roth accounts, you won’t be given a tax break, but you’ll take distributions tax-free once you retire.
Three types of retirement plans are popular with small businesses: SEP, SIMPLE IRA, and 401k.
Understand your options and the benefits available under each type of plan, and you will find the one that is the right fit for your company.
SEP contributions are deposited in an eligible employee’s traditional IRA.
A SEP plan could be suitable for both a self-employed business owner and an employer with employees.
Savers credits are also available for those who qualify.
Providing a retirement plan is one of the most effective ways business owners can help themselves and their employees prepare for retirement.