Business Owners
Retirement Savings Plans for Business Owners
Business owners are always looking for more ways to reduce the taxes they pay, and Retirement Savings Plans can be a powerful arrow to add to your quiver.
The vast majority of businesses in the U.S. employ fewer than 100 workers, yet these employees have less access to retirement planning channels and other benefits than those who work for larger companies. That means about 50% of Americans don’t have the same opportunity to save for retirement via tax-advantaged channels that many others have.
In fact, a recent survey of small business owners reveals that only about half of all small businesses offer a retirement plan, although that number has been steadily increasing. It’s likely that those businesses would be more attractive to potential employees if they offered a retirement plan. And many small business owners may not realize that retirement plan options have become more affordable in recent years, as more options have become available. Additionally, the SECURE Act of 2019 created or expanded several tax credits that can total up to $5,500 per year ($16,500 for 3 years) for small business that create or enhance their retirement plans.
Why Choosing the Right Retirement Savings Plan is Important to YOU
If your business has an existing Retirement Savings Plan, here is something you may not have thought about.
When you first enrolled your business in a Retirement Savings Plan, you might have done so to take advantage of the tax benefits it offered.
Today – possibly years later – you may well be thinking about your own retirement. So your plan’s performance isn’t just one more aspect of your fiduciary responsibility – it affects you in a very real way. Therefore, you may well be wondering whether your business’ Retirement Savings Plan, along with your Social Security Benefits, will provide the assets you need to live comfortably.
It’s a sad fact that most people nowadays have no idea how much they’ll need to have saved for a secure retirement. And even though advances in medicine allow many to live longer lives, the downside result is the very real possibility you could actually outlive your savings.
These are all important factors to consider in managing your business’ Retirement Savings Plan to ensure it’s delivering the very best results possible for both your employees – and for YOU. Because there’s nothing worse than reaching the end of your career and finding out you don’t in fact have a plan that you can actually retire on.
We can help make sure this doesn’t happen for you – and for companies like yours, that is exactly what we do. You can schedule a free plan review and risk reduction analysis by starting our Business Owners Fact-Finder.
Choosing the Right Retirement Savings Plan Can Help Your Business AND Your Employees
As a business owner, you may be surprised to find that offering the right Retirement Savings Plan may significantly benefit both you and your employees. Here are some of the ways that choosing the right Retirement Savings Plan can help:
- Your business can grow and prosper by rewarding and retaining the best employees.
- Obtaining the best employees can help your business grow faster.
- A new raft of legislation has big benefits to you and your participants! The SECURE ACT 2.0 includes several provisions that could positively impact your financial future, including: expanded access to retirement savings plans, incentives for employers to offer automatic enrollment which can help increase participation, ability to use retirement accounts to help cover the cost of childbirth or adoption expenses, and the creation of a new type of annuity that offers lifetime income guarantees.
- Help participants today with the rising cost of living by simply talking to them about their retirement plan. In uncertain times it can give workers real peace of mind if they feel more confident about life after work.
- Thanks to new legislation, now a student loan payment can count as a contribution if an employer opts to match it.
Choosing a Retirement Savings Plan for Your Business
In choosing the right Retirement Savings Plan for your small business, it pays to have a working familiarity with the different kinds of retirement options. You can learn about Retirement Savings Plans here. Or check out our guide below, “Quick Guide to Retirement Savings Plans for Small Business Owners” which lists the major features of each type of plan, along with an overview of benefits.
Another good source of information on retirement plans can be found at the Department of Labor’s website. And, of course, the plan providers you work with should be able to provide you with educational materials.
Prior to making decisions regarding the implementation or selection of a retirement plan, we recommend consulting with our expert team to assess the optimal plan that aligns with the needs of both the business and its employees.
Business Owners
Get Started
Ready to take charge of your retirement planning as a business owner? Whether you are a one-person operation or a large corporation, we can help. Click the link below to get started with our Retirement Planning Services tailored just for you.
Upon clicking, you’ll land on our Fact-Finder form. By filling it out, you’ll provide us with insights into your unique circumstances, enabling us to tailor our approach to your needs.
Once you’ve completed the form, you’ll be redirected to our online calendar to schedule your complimentary 25-minute initial consultation.
During this session, you’ll have the opportunity to delve deeper into what we offer and how it can benefit you. It’s a chance for us to understand your goals and for you to assess how we can help you achieve them.
Helpful Guides
“Quick Guide to Retirement Plans for Small Business Owners”
Learn about the major features of each kind of retirement plan, including SIMPLE, SEP, 401(k), defined-benefit, and profit-sharing plans.
Everyone Can Benefit from a Retirement Savings Plan Review:
For business owners without an established Retirement Savings Plan, a thorough review is imperative to address this crucial financial aspect.
If you are a business owner and already have a Retirement Savings Plan in place, then we can likely enhance its effectiveness and optimize its benefits.
If you are not own a business, then you are an employee with very limited ways to reduce the taxes they pay. Rest assured, we offer solutions tailored to your needs as well!
Want to find out if a Retirement Savings Plan
is Right for Your Business?
Then schedule a complimentary 25-minute initial consultation.
We can discuss your situation and needs.
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