If you are a Sole Proprietor or a small business owner with less than 100 employees then we’d be happy to provide tax and investment advice in order to help find the best retirement plan for your situation and needs. These potential plans include the following:
SEP IRA Plan – Usually best for sole proprietors or family businesses. Rarely are these the right choice if you have a lot of employees. You can contribute up to $61,000 as of 2022 or 25{732594ea31e72095910d746e913a6a6397494864935c93cd30bf5038bbc545ed} of participant’s compensation.
SIMPLE IRA Plan – SIMPLE stands for Savings Incentive Match Plan for Employees. Usually best for small employers that don’t need all the bells and whistles of a 401k plan. Must have less than 100 employees to choose this option. They are cheap to start up ($0 or $10) and the main expense is simply matching either 3{732594ea31e72095910d746e913a6a6397494864935c93cd30bf5038bbc545ed} of employee contributions (during tough times you can reduce this to as low as 1{732594ea31e72095910d746e913a6a6397494864935c93cd30bf5038bbc545ed}) or a 2{732594ea31e72095910d746e913a6a6397494864935c93cd30bf5038bbc545ed} given to employees regardless of if they contribute. You can contribute up to $14,000 each year (as of 2022). There is an additional $3,000 added for those who are over 50 years old.
Solo 401k – This is highly similar to the SEP IRA only it could allow for loans if you’re with the right company. It is also intended for only one individual. It has the same limits: $61,000 as of 2022 or 25{732594ea31e72095910d746e913a6a6397494864935c93cd30bf5038bbc545ed} of participants compensation. There can be many other benefits of using a solo 401k that I won’t go into here. Usually we can get one set up for $0 but there can be annual administrative fees in some cases.
Group 401k – This can be a good choice for many reasons. It can be a good fit for fast growing companies and it also has more options than the other plans but has annual fees and requirements. Employees can contribute up to $19,500 as of 2022. There is also a provision to contribute an extra $6,000 if you’re over 50 years old.
Need help getting a retirement plan set up? Or would you like us to take at look at what you have right now? No problem. Either call now or fill out our contact form and we’ll get back with you as soon as possible. Choose “Company Retirement Plans” on the list.
