Small Business Retirement Plans – A Primer
Several clients have recently been discussing the idea of setting up a retirement plan for their businesses.
I wanted to share some relevant information in case this topic is also of interest to you.
RETIREMENT PLANS – TAX BREAKS AND SAVING FOR THE FUTURE
Investing in a retirement plan can provide the best of both worlds – potential tax breaks and building retirement savings for you and your employees.
These plans come in various shapes, sizes, and complexity, but here is a list of the common types you’ll encounter:
- Individual 401(k)
- Personal defined-benefit plan
There are lots of resources available to you discussing the details of these plans. Here is a good overview page to get started.
EVALUATE YOUR OPTIONS (AND COSTS!) CAREFULLY
There are many retirement plan providers to choose from.
As you evaluate your options, be sure to understand how everything works, and even more importantly, the fee structure behind the plans you’re considering.
Many times, business owners simply bypass this entire conversation because it is “too confusing” or “too complex”. Or they simply go with the first option that is presented to them.
And that can be a very expensive mistake.
Especially when it comes to saving for your future and retirement.
LIKE THE IDEA, BUT DON’T HAVE THE TIME?
Getting help reviewing retirement plan options and fees is just one of the many projects that I offer with my part-time CFO services.
If you like the idea of putting a plan into your business, but simply don’t have the time to get into the details, let’s talk soon.
Of course, the information provided above is general in nature. For specifics relating to your business, be sure to consult your tax advisor and/or other professionals to assist you.