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“AT AVIDIAN, WE DO MORE THAN MANAGE YOUR MONEY, WE PROVIDE COMPREHENSIVE WEALTH PLANNING SOLUTIONS.”

  • 19years of success.
    Founded in 2003.
  • 54Financial
    Professionals
  • $3.5Billion Client Assets
    under management

Individual 401(k) plans/ Solo 401(k)

Individual 401(k) plans, also known as i401(k)s or Solo 401(k)s, are a great option for self-employed individuals or those with no common law employees including C corporations, S corporations, and limited liability companies (LLC’s). These accounts allow business partners to invest as both an employer and an employee with all the benefits of a traditional 401(k).

For investors making contributions as both an employer and employee, contributions cannot exceed $61,000 for the 2022 tax year or $67,500 if age 50 or older. There is no fee to establish an individual 401(k).

SEP-IRA (Simplified Employee Pension)

Simplified employee pension accounts are available for those who employ others, are self-employed, or who earn free-lance income.

SEP-IRAs allow employers to contribute up to 25% of the employee’s total compensation or up to 20% of income for the self-employed. Typically employers are the only ones that contribute to this type of small business retirement plan although employees are able to make contributions as well.

Simple IRA

Simple IRAs (Savings Incentive Match Plan for Employees) allow both employers and employees alike to make tax-deferred contributions to their retirement accounts. This is an ideal option for businesses with less than 100 employees or individuals who are self-employed.

Offering Simple IRAs allows you as the business owner to choose between two options for the amount you wish to match. For the 2022 tax year, employers can offer either a dollar-for-dollar match of employee contributions up to 3% of each employee’s compensation or a contribution of 2% of each employee’s compensation. These contributions are tax-deductible at the end of every year. Employees can contribute up to $14,000 or $17,000 for employees age 50 and older.

Traditional 401(k)

Both the business and the employees can set themselves up for a successful retirement while tapping into end-of-the-year tax savings by utilizing a 401(k) plan. As mentioned above, individual or Solo 401(k)’s are an option for businesses without employees, but for small businesses that do employ other professionals, traditional 401(k)’s can be a better option. This is because they often offer more options in terms of investment choices and can help lower your income tax bill.

There is typically a management fee for traditional 401(k) accounts and they allow employees to make pre-tax contributions up to $20,500 or $27,000 if 50 or older for 2022.

Are you on the right path in your retirement journey?

Download our FREE Retirement Survival Guide to see where you stand.

Our Retirement Survival Guide can help you answer critical questions including whether or not you’re truly ready to retire, how to determine the amount of annual retirement income you’ll need, and deciding where that retirement income will come from.

Why work with Avidian for your small business retirement plan?

Small business retirement planning tailored to your needs

Outside of providing you with our recommendations on the best small business retirement plan for your needs, our advisors at Avidian Wealth Solutions are well equipped to assist you in determining factors such as:

  • How much your business is able to contribute as the employer
  • How much you’ll be able to contribute as an employee
  • Tax implications

In addition, we can help you to compare the contribution limits, fees, tax deductions, early withdrawal penalties, and flexibility in investment choices for each type of retirement plan.

And because we offer financial solutions outside of retirement planning, we can also assist you with other aspects of your financial plan, including business succession planning, helping to set various aspects of your business up for whatever comes.

Consider the potential risks of each plan

As a business owner, you’re likely accustomed to risk. Although there is no way to prevent it, there are steps you can take to prepare for it. When selecting a business retirement plan, it’s wise to weigh the risks of each option and establish protective measures when available to protect the retirement you’ve worked so hard to achieve.

Avidian Wealth Solutions can help you do just that. We incorporate risk management into each stage of your retirement planning so that no corner of your finances is left unplanned. We will work with you to consider the risks of each type of retirement plan on both a personal and professional financial level, working to protect your retirement income and help you determine the safest place for retirement money.

Optimize your tax-saving strategies

Regardless of which business retirement plan you choose, each option offers varying tax advantages to both you as the employer and your employees. Certain accounts, such as the traditional 401(k), allow you to make contributions with your pre-taxed dollars and require IRS filing. Whereas others, like the SEP-IRA and the Simple IRA, are funded with post-taxed dollars and do not require IRS filing.

Avidian Wealth Solutions can help you evaluate tax laws such as these and understand their effect on your business’s total financial planning. From there, we can offer recommendations on the steps you can take to make the most of your hard-earned dollars come tax season. We are also able to combine your retirement planning with your tax planning in Houston to help you choose the retirement plan that will offer you the most tax savings.

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