Offering a solid retirement plan can be a key component when it comes to attracting and retaining good employees.
For sole proprietors, a Simplified Employee Pension or SEP IRA is very popular.
Here are the most popular retirement plans for small businesses, according to Jeff Cutter, CPA, PFS, a financial planner in Mansfield, Mass.
For business owners who employ themselves, and possibly a spouse, the Individual 401(k) helps maximize retirement contributions.
Whether you're just entering the workforce as a newly minted entrepreneur or freshly self-employed after years of being in the traditional workforce, there's no doubt that you have a laundry list of things that need to get done.
From the daily machinations of setting up computer systems and phone lines for your business to the big picture plans for your new company, it probably seems as though there are not enough minutes or hours in the day.
If you’re currently running your own business but looking to expand, the SIMPLE IRA may be the account you need.
With this type of account, you can continue investing even after you’ve hired an employee, but you have to match your employees’ contributions, up to 3 percent of their pay.
It works a lot like a Traditional 401(k), but your spouse can join the plan.
Acting as your own employee, you’re able to contribute as much as ,000 to your individual 401(k), or ,000 if you’re over age 50.