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Information for Small Businesses

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The Top Three Retirement Plans for Small Businesses - Abstract: There are quite a few different retirement benefit plan options out there and many of them are specifically designed for small businesses. Three options stand-out depending on what you want to accomplish with your plan and how much flexibility you need. These are: 401k plans, SEP IRAs and SIMPLE IRAs.

How to Achieve Financial Independence With Your Small Business? - Abstract: When it comes to self-employment, a lot of people consider financial independence as one of its biggest perks. However, not all the small business owners pay enough attention towards saving for their future. Choose a retirement plan that offers investment freedom is a key step towards financial independence.

What Is a Solo 401k? - Abstract: Not every company offers a 401k, but many workers have the option to participate in an employer-sponsored retirement plan. But what if you're self-employed? Just because you work for yourself doesn't mean you can't open a 401k.

Appleby's Employer Retirement Plans Comparison Table for Small Businesses-2017 Plan Year - Abstract: This table provides a comparison of the features and benefits that apply to retirement plans that can be sponsored/adopted by small business owners. Focus on the areas that are important to the business owner to help ensure that the plan chosen is the plan that is most suitable for the business.

Resources

Directory of Solo 401k and Small Business Retirement Plan Providers: Click here to download.

Solo 401k Calculator available here.

A glossary retirement plan and investment terms available here.


401k Plans for Sole Proprietorships

Regulatory reform now allows Sole Proprietorships to set-up and contribute to a 401k plan. These are often called Solo 401k or Individual(k) plans. A number of vendors are beginning to market specific plans to meet this need.

We have put together a list of providers that offer these plans. Click here to obtain a copy of this list.

Calculator available. Click here to calculate how much you can contribute to a Solo 401k in comparison to a SEP or SIMPLE plan which have different limits.

General Features of a Solo 401k Plan:

Plan Establishment Sole proprietors with no additional employees other than the spouse of the proprietor or partnerships whose only employees are self-employed partners and their spouses.
Trustee and Plan Administrator Business Owner, Spouse or Partner or any combination, or any other designated third party.
Salary Deferral
Contributions
Up to $18,000 (not to exceed 100% of pay and no more than $270,000 of pay can be taken into account). Total salary deferral and employer maximum is $54,000.
Catch-up
Contributions
Individuals age 50 or older may contribute an additional $6,000 in salary deferrals beyond the $18,000 which does not count towards the maximum total contribution limit of $54,000.
Employer Contributions Up to 25% of pay (20% for self-employed) to a maximum of $54,000. Salary deferral contributions are also counted towards this limit.
Rollovers Rollovers and transfers allowed from traditional IRA, SEP, Qualified Plans or Keoghs (Profit Sharing, Money Purchase Pension, Defined Benefit), 401k, 403(b) and governmental 457 plans. SIMPLE IRAs are eligible for rollover after two year holding period is met.
Loans Available to all participants, including unincorporated business owners.
Government Reporting IRS 5500-EZ.

 

401k plans are subject to numerous and complex rules, regulations and tax qualification requirements. Be sure to consult with a qualified professional before making any decisions.



Information on Small Business Plans

Starting a small business retirement savings plan can be easier than you think. Here are some resources on a varity of retirement plans available to the small business person.

Employer Retirement Plans Comparison Chart for Small Businesses - Summary: This chart provides a comparison of the features and benefits that apply to retirement plans that can be sponsored/adopted by small business owners. Focus is on the areas that are important to the business owner to ensure that the plan that is chosen is the plan that is most suitable for the business.

Retirement Plan Comparison Chart

IRS Publication 560, Retirement Plans for Small Business.

DOL's 401k Plans for Small Businesses

401k Plans for Small Businesses

Choosing a Retirement Plan for Your Small Business - Summary: In this piece you will find a chart outlining the advantages of each of the most popular types of IRA-based and defined contribution plans and an overview of a defined benefit plan.

Retirement Plans FAQs Regarding SEPs

FAQs Regarding SIMPLE IRA Plans

SEP IRA Quick Reference Guide

SEP Retirement Plans For Small Businesses

SEP Vs SIMPLE IRA - Summary: This reference guide provides a comparison of some of the key features and benefits of these plans.

SIMPLE 401k Plans

SIMPLE IRA vs SIMPLE 401k's

Simple IRA Plans for Small Businesses


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