Retirement plans are critical for your future, especially if you’re a small business owner.
Retirement plans are an excellent benefit for employees of a small business, but what about the business owner? While there are different types of accounts, those suitable for your team may not suit you as the owner. Ensuring the retirement plans you opt into are ideal for everyone’s future means you should pay attention to options that use stock to grow investments over time. A reputable CPA will be able to help you pick out the perfect plan that works with your overall growth plan. So, what are some types of small business retirement plans to choose from?
IRA-Based Retirement Plans
Traditional IRA
A Traditional IRA will allow you to deduct part of your employee’s wages, so they are contributing to their own retirement planning every month. Employees have flexibility with how much money they’d like to put away every month.
Simplified Employee Pension IRA
Also called a SEP-IRA, this type of retirement plan will allow you to contribute to an account on behalf of your employees. This works by equally distributing money into an IRA or Annuity into all of your employees’ accounts at once.
Simple IRA
A SIMPLE-IRA is the only type of IRA retirement plan that allows employees and employers to contribute. This is ideal for small businesses with fewer than 100 employees.
Defined Contribution Retirement Plans
Traditional 401k
If they’re offering retirement planning for their team, most larger companies will offer a Traditional 401k plan. These work best when a business owner is paid a regular salary like the rest of their team. If you function as a solo LLC, there are options for you as well!
Solo 401k
If you’re a solo entrepreneur, you can also establish a Solo 401k. These retirement plans work as if you were your own employee and the contribution limits are much higher than a traditional IRA account.
Contact Bowman & Company for Your Small Business Retirement Plans Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim at decreasing your taxes and increasing your net worth through responsible, timely, and proper recordkeeping. We offer our services to clients throughout the Washington, D.C. metropolitan area, including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.