What type of retirement plan is best for my small business?
Ultimately, that is a decision that you will have to make after considering the specific needs of your business. However, Avidian Wealth Solutions can provide the professional guidance you need to make an informed decision. We can discuss your financial goals, any tax benefits you may be eligible for, and the different types of retirement plans that would best suit your needs.
That said, some types of retirement plans for small businesses that may be available for you include:
Small business 401(k)
A small business 401(k) is a retirement savings plan specifically designed for small businesses. It allows employers to set aside money in an account for their employees and provides tax benefits that can help reduce the overall cost of saving for retirement. With a small business 401(k), employers have the option to match employee contributions, up to certain limits, making it an attractive choice for many small businesses.
A Traditional 401(k) is a retirement savings plan designed for employers to set aside money on behalf of their employees. It offers the advantage of allowing employers to contribute to employee accounts and receive tax benefits, while also providing employees with potential employer matches that can significantly increase their retirement nest egg.
Additionally, this type of plan is easy to administer and manage compared to other types of plans, making it an ideal choice for small businesses looking to offer a retirement plan without incurring too much administrative costs or hassle.
IRA for small business owners
An IRA for small business owners can be an ideal retirement savings option for those who are self-employed or own a small business. There are different types of IRAs including:
- SEP IRAs
- Roth IRAs
- SIMPLE IRAs
An IRA allows individuals to save money in tax-deferred accounts that grow over time and provide significant tax benefits. Depending on the type of IRA, the contributions made by the individual are deductible from their taxable income, meaning they will pay fewer taxes overall.
Continue reading: How to save for retirement as a small business owner