Fewer than half of all small businesses have a retirement plan… and that’s a problem.
Most people don’t start saving for retirement unless it is very easy to get started. For most savers, that starts at work.
You might be surprised at how quick, easy and cost effective it is to start a plan for you and your employees. The biggest hurdle is just deciding to do it.
Selecting the right type of plan Depends on what your goals are and the size of your business. Here are the most common options:
COMMON SMALL BUSINESS RETIREMENT PLANS
Simple IRA
As the name implies, a SIMPLE IRA is easy to set up and administer. Each employee will open their own SIMPLE IRA account to receive both employee deferral contributions and employer match. Other than payroll expenses and the company match, SIMPLE IRAs shouldn’t have any additional employer expenses. Once the funds are contributed to the employee’s SIMPLE IRA account, the employee (together with their financial advisor) is responsible for investing the dollars and the employee is responsible for any costs incurred.
SEP IRA
Much like the SIMPLE IRA, a SEP IRA is easy to set up and administer. Unlike with SIMPLEs, SEPs can only accept employer contributions, not employee contributions. But like the SIMPLE, other than payroll expenses, SEPs shouldn’t have any additional employer expenses. Once the funds are contributed to the employee’s SEP IRA account, the employee (together with their financial advisor) is responsible for investing the dollars and the employee is responsible for any costs incurred.
Solo 401k
A solo 401k is much like a traditional 401k but is designed for a single person (or a single person and their spouse). A solo 401k is easy to set up and administer and has very low administration costs. The employee (together with their financial advisor) is responsible for investing the dollars and the employee is responsible for any costs incurred.
401k
A 401k is the most versatile option for a small business retirement plan. With a 401k, you can add features like profit-sharing, vesting, roth etc. Setting up and administering a 401k is a little more involved and will incur some additional cost.
To learn more about each small business retirement plan type, click here:
https://www.oakroadwealth.com/
Let us know when you’re ready to get started!