Retirement Plans for Small Business

Retirement plans for small business make it easy for the owners of small companies to help their employees save for retirement. Offering such retirement investment plans allows business owners to provide tax protected savings for employees as their investments grow in preparation for retirement. This creates a positive situation for small business owners and employees alike, because everyone gets the chance to save money in accounts that maximize savings potential. In addition, small business employers are usually more likely to find and keep reliable employees when they offer retirement funding as a benefit. Simply put, retirement plans for small business benefit owners and their employees in many ways.

If you are looking for easy ways to help your employees plan for their financial futures, you have multiple options. The best plan for your and your company will be simple to maintain and maximize investment growth with flexible contributions. You can even use this website to help you locate a reliable financial planner in your area who can help you to make the best choices for your company.

Small Business Employees Need Options

Tax sheltered savings plans help business owners invest in their employees. In turn, employees feel more secure in their jobs knowing that they are working towards funding their futures. Savings accounts are one way to put money aside for retirement, and Social Security is also an income source that many future retirees have plans to use for money once they have completed their working years. However, these sources are almost never enough to completely fund retirees futures. The costs of necessities, health care expenses, hobbies and fun activities add up, therefore it takes substantial savings to afford to live without regular paychecks.

Planning ahead is the best way for future retirees to ensure that they have enough money to retire when they want to. In addition, most employers are happy to help their valued employees invest for their retired years after dedicating many years of service to their companies. Employers of small companies can guide their staff in growing their savings when they provide beneficial investment plans. Understanding available options of retirement plans for small business owners will guide employers in selecting the best plans for their needs and the needs of their employees.

Small Business Plan Options

Some of the most popular retirement plans for small business offer flexible investment options, good return rates, beneficial tax protection and easy employer implementation. With easy-to-understand establishment for employers and maximum investment flexibility for employees, these plans make it easy for everyone involved to save for retirement. If you are the owner of a company who is looking for retirement plans for small business to provide great retirement savings options for your staff, a smart first step is to decide which popular plan type will work best for you and your employees.

The 401k is possibly the most popular type of investment account that allows for pre-tax investing. There are several varieties in this category of investment accounts. The traditional 401K is flexible when it comes to contributions, allows for employers to match funds and encourages monetary growth. However, traditional 401ks require a lot of annual paperwork, and may not be the best choices of retirement plans for small business.

If a company consists only of the owners with no other employees, an Individual 401k is a good selection. This variety of retirement plans for small business allow company owners to invest more money annually than many other investments allow. This is a bonus for this type of company because it is often difficult for businesses of this size to generate enough funds for the future. Safe Harbor 401ks minimize paperwork and is beneficial to businesses with several employees because it also allows for matching funds. However, company owners can contribute whether their employees participate or not.

In addition to a variety of 401ks, retirement plans for small business include the Simplified Employee Pension Plan or SEP and Savings Incentive Match Plan for Employees or SIMPLE. SEPs are popular because they are easy to operate and are flexible. Basically, an employer creates an IRA for each of their employees and contributes tax protected amounts each year. With a SIMPLE plan, each employee also gets their own IRA, and both employer and employee can make contributions. These are great options that require little paperwork for businesses with less than 100 employees.

Saving for the future if important to you as the owner of a company and to your employees. Helping them prepare will encourage them to be dedicated to you and your company’s success. Retirement plans for small business provide many options, so you will be sure to find one that fits your needs perfectly. Your employees will feel more secure when you invest in their futures.