Small Business Plans

Saturday 04th of September 2010

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alt Being an independent small business ourselves, we are acutely aware of the issues facing small business owners. In particular, the need for financial solutions that are tailored to your specific needs, flexibility, and a minimum of paperwork, cost, and hassle. To meet these requirements, we have an array of retirement plan solutions. Which plan fits best depends on your objectives and business organization, so we work closely with small business owners to determine the plan that will best meet the requirements. Below is a list of the small business retirement plans available.

• SEP-IRA (Simplified Employee Pension IRA)

• SIMPLE IRA (Savings Incentive Match Plan for Employees IRA)

• Standard 401k (Traditional and Roth)

• Individual 401k (Traditional and Roth)

Because we do not receive commissions or revenue-sharing agreements from any mutual fund companies, you can be certain that the investments we recommend for a retirement plan are chosen because they are the best investments available and not because they are better for the advisor. If you are thinking about starting a retirement plan or would just like an evaluation and comparison of your current plan, we would be happy to discuss it with you.

SEP-IRA

Suitability: Sole proprietors and employers with 1-50 employees

Contribution limit: $49,000 (up to 25% of income for incorporated business; 20% for sole proprietors)

Employer contribution: Optional

Employee contribution: Not allowed ⇔ PRIMARY DRAWBACK

Investment options: Any standard investment (mutual funds, ETFs, stocks, bonds, CDs)

Why choose this plan: Easy to set up; no administration cost; annual employer contributions are not required

SIMPLE IRA

Suitability: Employers with 2-100 employees who wish to make matching contributions

Contribution limit: $11,500 ($14,000 if age 50 or over)

Employer contribution: Required ⇔ PRIMARY DRAWBACK

Employee contribution: Yes

Investment options: Any standard investment (mutual funds, ETFs, stocks, bonds, CDs)

Why choose this plan: Easy to set up; low administration cost; encourages employee savings

401K (Traditional and Roth)

Suitability: Employers with 5-100 employees

Contribution limit: $16,500 ($22,000 if age 50 or over)

Employer contribution: Required in some cases

Employee contribution: Yes

Investment options: Varies by plan, but significant improvements have been made in recent years

Why choose this plan: Has the highest limits for employee and employer contributions; encourages employee savings and is often combined with profit sharing

Individual 401K (Traditional and Roth)

Suitability: Sole proprietors

Contribution limit: $49,000 ($54,500 if age 50 or over)

Investment options: Varies by plan, but significant improvements have been made in recent years

Why choose this plan: Has the highest contribution limits for individuals

Page Last Modified: August 13 2010, 08:42