Small business retirement plans
Learn ALL the opportunities.
401 (k) or Exec benefit plans
401(k) plans can become very confusing if you are trying to navigate the market without an expert on your side. We are not perfect by any means but we can be your partner.
We are aware that as a small employer you must be extremely sensitive to cost. We certainly want to be sensitive to this and usually only rarely would we see a need for a 401 (k) in the truly small retirement plan space.
We have run into some situations where some sort of executive bonus type plans might actually be more of an appropriate item to implement. We think this IRS link is always a good resource to review. They do actually note several of the different options.
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The IRS has a decent resource page for learning a little more about the basics on the plans, how the maintain/administer plans and how to terminate or change.
SEP IRA
Simplified Employee Pension (SEP) plans can provide a products for an employer to set aside money for themselves and their employees.
A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.
Here is a short list of details:
- Easy to set up and operate
- Low administrative costs
- Flexible annual contributions
- Employer must contribute equally for all
Payroll deducted IRA’s
Payroll deducted IRA plans are exactly what they sound like. In essence, this is simply an IRA account (owned individually) that has money directly payroll deposited into the account.
This is a great link to the IRS site that details out how to administer a plan such as this. Click here.
These plans are individually owned so the entire account balance is controlled and handled by the employee.
This type of a structure certainly has a wide array of both positives and negatives which we like to really build upon as we start a plan.
We find value in these type plans for very small employers that really are not looking to grow into something large and that never really aspire to grow their business much beyond a few employees.
SIMPLE IRA
SIMPLE IRA plans are exactly what they sound like. In essence, this is the easiest or most “simple” type retirement plan you can offer as an employer. This is a great link to the IRS site that details out how to administer a plan such as this. Click here.
These plans are individually owned so the entire account balance is controlled and handled by the employee. There is some work on the employers side of this type plan from an admin, match and few other perspectives.
This type of a structure certainly has a wide array of both positives and negatives which we like to really build upon as we start a plan.
We find value in these type plans for small to medium businesses that can almost always provide a match, want something SIMPLE and are concerned about costs.
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You can feel confident that your consultant at Innovative Wealth Partners has the access to comprehensive research, infrastructure, and support systems that help manage your financial life.
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