Information for Small Businesses
Tax Credit for Small Business Retirement Plans - Summary: When small business employers are deciding whether to establish a retirement plan, one hurdle they face is the expense involved with implementing the plan and educating the employees. But, there is a tax credit available to small business employers, which can be used to offset a portion of those expenses.
Solo 401k Plan Owners Need to Be Aware of Three Important Events - Summary: As the plan trustee of a Solo 401k, you are responsible to keep the plan in compliance with the IRS regulations. Usually, the task of a Solo 401k plan trustee can be quite simple. However, as the plan owner, you will need to stay on top of three events.
Choosing a Retirement Solution for Your Small Business - Summary: Starting a retirement savings plan can be easier than most business owners think. What's more, there are a number of retirement programs that provide tax advantages to both employers and employees.
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:
||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.
|Up to $18,000 (not to exceed 100% of pay and no more than $265,000 of pay can be taken into account). Total salary deferral and employer maximum is $53,000.
|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 $53,000.
||Up to 25% of pay (20% for self-employed) to a maximum of $53,000. Salary deferral contributions are also counted towards this limit.
||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.
||Available to all participants, including unincorporated business owners.
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 article 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 IRAs vs. Safe Harbor 401k Plans: What Are the differences?
SIMPLE IRA vs SIMPLE 401k's
Simple IRA Plans for Small Businesses
Best Retirement Plan for Small Business Owners?
Individual Retirement Account is an IRA that provides some tax advantages for retirement savings.