A Quick Retirement Planning Guide
You asked for a 2023 quick reference guide to retirement planning for the small business owner — so here you go. Some plan options for small entities and the self-employed include SEP-IRAs, SIMPLE IRA plans, SIMPLE 401(k) plans, and individual 401(k) plans. Each plan has specific features, requirements, and contribution limits that should be considered when choosing the right plan for your business.
A Quick Retirement Planning Guide
Saving for retirement is essential for everyone, including small business owners and self-employed individuals. The IRS offers several retirement plan options with tax advantages that can help you and your employees build a secure financial future. This guide will provide an overview of these retirement plans and help you determine the best option for your business.
- SEP-IRAs (Simplified Employee Pension)
- Ideal for small businesses and self-employed individuals
- Employer-funded, with flexible annual contribution limits
- Contributions are tax-deductible for employers
- Easy to set up and maintain, with low administrative costs
- Employees are immediately 100% vested in their accounts
2. SIMPLE IRA Plans (Savings Incentive Match Plan for Employees)
- Designed for small businesses with 100 or fewer employees
- Both employers and employees can contribute
