Tips To Invest For Retirement As A Small Business Owner
Wed Feb 17, 2010, 2:24 am | Leave Comment
If you own a business with employees or self-employed with a single-person operation, you might need to invest in your retirement as well as your employees’. In a small business, if you can afford it, then the retirement benefits are something that can retain your top-notch employees. A variety of investments are available to you and your employees:
- SEP (Simplified Employee Pension) IRA
Small business owners can make tax-deductible contributions. These accounts are easy to set up and maintain. Check with IRS. You may be required to contribute for your employees. - SIMPLE (Savings Incentive Match Plan for Employees) IRA
This plan works well for companies with 25 or fewer employees. As an employer, you can offer a salary deferral plan for your employees. It’s easy and mostly affordable. - Individual 401(k)
As a small business owner with no employees or a partner in the business, you may be able to contribute more than with other retirement plans. - 401(k) Plans
This is a very flexible plan. It provides the highest level of employee pre-tax contributions. - Profit Sharing Plans
Again, this is a very flexible plan as well. It is designed to reward long-term employees with tax-deferred growth. It can also include an optional loan provision.
In a Nutshell
As a business owner, you can choose from a full suite of retirement plans to find the ideal solution for your business. Also, take advantage of a wide spectrum of investments available in the market to support the short term financial needs of your business. Talk to your bank and your financial adviser.
What do you think?
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