Small businesses are the bedrock of America. While major corporations across the globe have unbelievable resources and leverage at their disposal, it still takes every day, hardworking people to keep our economy moving. These businesses create their own unique risks for the owner but also provide an opportunity.
Small businesses and their owners have an exceptional level of options regarding retirement plans at their disposal. Yes, we’ve all heard of the 401(k). It’s the most prevalent retirement plan and the one everyone is usually familiar with. Depending on your business though, it might not be right for you, especially if you are a small business. There are more streamlined and cost-effective options available that can benefit the owner in many ways. Plans like SIMPLE IRA’s for companies with under 100 employees or SEP-IRA's that have larger contribution limits.
Aside from the benefit of providing a recruiting and retention tool for the exceedingly valuable workforce, there can be massive tax benefits involved in these plans. By starting a retirement plan for your small business, you can effectively save for your own retirement, offset current business costs, and help secure your employees' financial future.