To examine options for both you and your employees, try a three-part strategy:
- Identify the savings plans best suited for your business.
- Select an option that can minimize your tax liability.
- Diversify your investments to maximize yields.
Action Steps
The best contacts and resources to help you get it done
Step into SEP
A Simplified Employee Pension (SEP) is one of the most hassle-free retirement plans. Operating much like an Individual Retirement Account, it allows larger contributions and greater tax savings.I recommend: Contact Merrill Lynch or Fidelity, two financial service companies that cater to needs of the self-employed.
Keep it SIMPLE
Business owners and their staffs both contribute to a Savings Incentive Match Plan for Employees (SIMPLE). This option is open to businesses with 100 or fewer employees who earn at least $5,000 in the previous year.I recommend: Contact Morgan Stanley or Charles Schwab to learn about SIMPLE plans and compare them to other options.
Find a small business specialist
Some firms specialize in customized small business solutions, including pensions that match a small business owner's annual contributions to fluctuations in earned income.I recommend: Compare MaxPlans and Vanguard deals for small business.
401(k)s: Choose carefully
Employees may contribute a percentage of their pay to 401(k) plans through payroll deductions. But employers need to consider the complexity of these plans when assessing retirement options.I recommend: Contact Sharebuilder or Decimal Inc., both of which tout easy-to-administer 401(k) plans for small business.
Compare, compare, compare
Investment companies want your business, and using the Web saves time when comparison shopping.I recommend: Go to BuyerZone.com to get quotes on 401k and IRA retirement plans.
Tips & Tactics
Helpful advice for making the most of this Guide
- Select a financial planner carefully. Professionals should develop specific plans and not promote only certain investments.
- Communicate with employees. State your retirement goals clearly, and work with employees so they understand their options.
- Start early. Don't wait until age 50 to start thinking about retirement.
the Retirement Plans page at Business.com
Earn From 1.90% to 2.20%
With GE Capital Corporation. Not An Offer Of Securities For Sale.
For Investors | For Businesses
GEInterestPlus.com
With GE Capital Corporation. Not An Offer Of Securities For Sale.
For Investors | For Businesses
GEInterestPlus.com
401ks Designed for Small Businesses and Individuals
Low-cost, on-demand and easy-setup plans from ShareBuilder 401(k). Plans for 1 or more priced from $15 month. Learn more.
www.ShareBuilder401k.com
Low-cost, on-demand and easy-setup plans from ShareBuilder 401(k). Plans for 1 or more priced from $15 month. Learn more.
www.ShareBuilder401k.com
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www.bgiDCsolutions.com
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