Small Business Retirement Plans

Many business owners believe the myth that a small business or sole proprietorship is too small to offer a 401k when in truth businesses of all sizes could benefit from this type of plan. The 401k offers diversity in the design of a plan as it offers higher contribution limits, more flexibility in plan design, and potentially better investment options than a SEP or SIMPLE.

A 401k, SEP (Simplified Employee Pension) or SIMPLE (Savings Incentive Mach Plan) affords small businesses options when offering employees a retirement plan. The SEP and SIMPLE were designed for businesses with less than 100 employees and can be less costly to administer than a 401(k). SEP and SIMPLE plans are simpler in their design and can, therefore, be easier to manage for businesses with limited administrative needs.

As qualified retirement plans, SEPs and SIMPLEs enjoy the same tax treatment as other plans. Contributions by employees and employers are tax deductible or made on a pre-tax basis. The accumulation inside the accounts grows tax deferred. The many of the same restrictions apply as well. Withdrawals made prior to age 59 ½ may be subject to a penalty.

Our benefits team will walk you through each platform to discover which best meets your company’s needs. Our goal is to help keep operations financially healthy and productive though the design of a valuable employee benefit.