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Small Business and Self Employed Retirement Plans

As an entrepreneur, you've got big plans. Retirement is just one.

Let us do all the hard work, so that you and your employees can focus on growing your business.

Choosing a retirement plan that fits your business

One of the most common areas of confusion for business owners is retirement plans: should you offer one or not? On the one hand, a retirement plan can make you a more attractive employer and can also help you offset taxes. But on the other, it can cost the company money, require special administration and regulations, and there are a ton of options. So how do you figure out what makes the most sense?

Whether you are self-employed or the owner of a small business, we offer a wide range of retirement plans designed to meet your specific needs. If you want to talk through the possibilities for your company, let’s connect!

SEP IRA

For some small business owners, the idea of establishing a retirement strategy evokes worries about complicated reporting and administration. If this sounds familiar, then you may want to consider whether a Simplified Employee Pension (SEP) plan may be right for you.

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA may be appealing for small business owners seeking a retirement plan with an employer match, but with minimal administration and contribution flexibility.

401(k) for Small Businesses

If you are looking for ways to offer competitive benefits to your employees, while also enjoying tax advantages that may be available to you as the employer - you may want to consider a 401(k) retirement plan.


SEP IRA

Is a SEP IRA right for your business?

A Simplified Employees Pension (SEP) plan is a low-cost retirement plan for small businesses and self-employed individuals. This plan requires minimal administration, and offers a flexible contribution schedule. As the employer, you make discretionary, tax-deductible contributions directly into your and each eligible employees' IRAs.

SEP IRA

Is a SEP IRA right for your business?

The SEP earns the “simplified” in its name and stands as an attractive choice for business owners looking to maximize contributions while minimizing their administrative responsibilities. If you aim to keep administration easy and inexpensive, then a SEP IRA may be right for you. In addition, a SEP IRA offers higher contribution limits than other plan options, allowing you to maximize contributions for yourself.

SEP IRA

Plan features

  • Higher contribution limits: The SEP IRA and 401(k) offer higher contribution maximums than the SIMPLE IRA. You have the flexibility to vary contributions each year from 0% up to 25% of compensation, with a maximum dollar contribution of $56,000 in 2019. 
  • Minimal administration: There are no plan filings with the IRS, making administration simple and low cost. You only need to complete Form 5305 SEP and retain it for your own records. 
  • Extended establishment date: Unlike other plans, a SEP may be established as late as the due date (including extensions) of your business’ tax filing for making contributions for the prior year.
  • Vesting: Employees are immediately 100% vested in all contributions.
  • Cost flexibility: There is no requirement for the frequency or amount of contributions. You are obligated to make the same contributions to all eligible employees. 
  • Employee eligibility: Only employees who are at least 21 years old and have been employed in three of the last five years must be covered.
  • Employee benefit: By restricting contributions to eligible employees, you are rewarding these employees, while at the same time reducing the cost of high employee turnover and covering short-tenured employees.

SIMPLE IRA

Is a SIMPLE IRA right for your business?

A Savings Investment Match Plan for Employees (SIMPLE) IRA is a employer sponsored retirement plan available to small businesses with fewer than 100 employees. This plan is funded by both an optional employee salary deferral and a mandatory employer match. Contribution flexibility and administrative simplicity make it appealing to many small business owners.

SIMPLE IRA

Is a SIMPLE IRA right for your business?

When it comes to plan operation, a SIMPLE IRA is true to its name. Administration is relatively easy and IRS filings are not required. Contributions are deposited in an IRA. 

SIMPLE IRA

Plan features

  • Two contribution choices for employers: SIMPLE IRAs blend employee and employer contributions. Employers either match employee contributions up to 100% of the first 3% of compensation, or contribute 2% of each eligible employee’s compensation.
  • Administrative simplicity: A SIMPLE IRA is relatively straightforward to establish and maintain. Unlike a 401(k), there are no required IRS filings or discrimination tests.
  • Vesting: Employees are immediately 100% vested in all contributions.
  • Employee eligibility:  Employees who have earned at least $5,000 in any prior two years and are reasonably expected to earn $5,000 in the current year must be covered. This eligibility requirement will not only help you reward long-tenured employees, but can also reduce costs associated with high employee turnover.

401(k)

Is a 401(k) right for your business?

We offer 401(k) plans that may be appropriate for businesses with 5 or more employees. This retirement strategy is primarily funded by the employee; the employer can choose to make additional contributions, including matching contributions. Our advisors will help plan sponsors select the 401(k) plan that is suitable for your business, provide administrative assistance in relation to changes in investment selections, help get everyone enrolled, and hold educational seminars for your employees.

401(k)

Is a 401(k) right for your business?

Offering a good retirement plan can help you attract and retain qualified employees. A 401(k) plan may also help you and your employees enjoy tax advantages, such as tax-deductible employer contributions and tax-deferred growth potential.

401(k)

Plan features

  • Higher contribution limits: The SEP IRA and 401(k) offer higher contribution maximums than the SIMPLE IRA. IRS maximum contributions include salary deferrals up to $19,500 for 2020.
  • Employer matching: In profitable periods, you may want to increase your match to reward hard work, create stronger employee incentives or put more money away yourself, which may be possible with a larger match. In leaner times, you may choose to reduce (or eliminate) it to minimize costs and liabilities
  • Loans: Participant loans are available.
  • Tax benefits: The 401(k) features tax-deferred growth potential and pre-tax contributions for employees, and tax-deductible contributions for employers. 
  • Administrative responsibilities: This retirement plan can be more onerous, but complicated testing may be eliminated by using a Safe Harbor 401(k).
  • Vesting schedule: While vesting is immediate on all employee contributions, a vesting schedule may apply to employer contributions. Immediate vesting may help you recruit top talent, while a more progressive schedule may encourage employees to stick around longer, helping you save time and talent.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.