For business owners
Retirement plans for small businesses and their teams.
Offering a retirement plan isn’t just for big companies. Small businesses, from sole proprietors to growing teams, can offer plans that help them attract and keep good people while saving for their own future.
Why offer a plan?
- Help attract and keep good employees.
- Give your team an easy way to save through payroll.
- Save for your own retirement with tax advantages.
- Tax credits may be available to help offset the cost of starting a new plan.
Common plan types
401(k) plans let employees contribute through payroll, with optional employer matching. SEP IRAs are simple employer-funded plans popular with very small businesses. SIMPLE IRAs are designed for smaller employers who want a straightforward plan with modest administration. Pooled employer plans let unrelated businesses join one larger plan, which can reduce paperwork for each employer.
What to compare
Fees and services vary widely between providers. Compare setup and ongoing costs, investment options, the administrative and fiduciary support included and how easy the plan is for employees to use. If you already have a plan, your most recent fee disclosure is a good starting point for comparison.
Getting started
The best first step is understanding your goals: how many employees you have, how much you want to contribute and how much administration you want to take on. From there, you can request proposals and compare them side by side.
The short version
- Businesses of any size can offer a retirement plan.
- Plans can help with hiring, retention and your own retirement.
- Common options include 401(k), SEP IRA, SIMPLE IRA and pooled plans.
- Compare fees, services and fiduciary support carefully.
Common questions
I’m self-employed with no employees. Can I have a plan?
Yes. Several plan types are designed for self-employed people and very small businesses.
Are there tax credits for starting a plan?
Tax credits may be available for eligible small employers. A tax professional can confirm what applies to your business.
Mike does not give legal guidance on an employer’s duties as a plan sponsor under ERISA or any other law, and does not give tax advice. Talk with properly licensed professionals about your business.
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Let’s talk about your business.
Book a free call to talk through your goals and the retirement plan options that may fit your team.