5 Best Retirement Plans For Small Business Owners
1. Traditional IRA- One of the top retirement plans for small business owners is a traditional IRA. This type of plan can be arranged for each employee, and there are a number of features that can be included. This is also one of the best retirement plans for self employed people. If your business has many employees this can require significant time and effort though, so this option works best if there are only a few employees with the business maximum.
2. Profit Sharing Keogh Plan- One of the top retirement plans for small business owners is a profit sharing Keogh plan. These accounts are funded by profit sharing among the business employees, and in years when no profit is made no contributions are needed. These may be easier to set up and manage than a supplemental executive retirement plan.
3. Solo 401K- One of the best 401k plans for the owners of small businesses is the Solo 401K plan. These accounts allow the benefits of a traditional 401K plan, but can also include profit sharing for sole proprietors and business owners. The contribution limits are higher than many other retirement plans, so your retirement fund will grow faster.
4. SEP IRA- These retirement plans for small business owners are Simplified Employee Pension plans, and there are tax advantages for employers and businesses that use these plans. It is possible to perform a 401k rollover to IRA if you decide this plan is a better choice for your business, and the reporting requirements are simplified as well.
5. Safe Harbor 401K- This is one of the top retirement plans for small business owners, and combines the benefits if a SIMPLE IRA and a traditional 401K plan. These accounts can be ideal retirement planning vehicles for many owners of small companies. There are no large expenses for account administration, and the contribution limits are larger than some other plans.