A good retirement plan can make it easier for an entrepreneur to achieve their personal financial goals. It can also help a company attract and retain loyal employees while offering them the potential opportunity to grow their savings tax-deferred and retire comfortably. Unfortunately, it is my experience that business owners, especially ones with a handful of employees, do not take advantage of the basic retirement plans that are available. They have the misconception that they are complicated; however, retirement plans can be easy to understand and establish.
Two of the options available to small businesses are the Simplified Employee Pension (SEP) IRA and Savings Incentive Match Plan for Employees (SIMPLE) IRA. They both offer low-cost, tax-advantaged retirement savings opportunities for self-employed individuals and small business owners — plus they are rather easy to administer.
A SEP IRA often works best if you are the only employee of the business or if it is just you and your spouse. A SIMPLE IRA is good for those who want to help themselves and their employees. Additionally, if you have a SEP or SIMPLE plan through your company, you may also invest in your own Traditional or Roth IRA to supplement your retirement savings.
There are more details to consider, so please call me at 800-453-4392, option 2 or e-mail email@example.com to discuss your situation. I also recommend that you include your accountant or tax preparer in the final decision.