A lot of entrepreneurs and small business owners are focused on growing their business (as they should be). However, sometimes business owners are so preoccupied with growing their business that they forget to save for their retirement. Consider a small business retirement plan designed to save for your future and potentially help your tax bill.
Advantages of Small Business Retirement Plans:
- Save for your future faster – small business plans give you the ability to put more money away than traditional IRAs and Roth IRAs
- Saving on taxes – company contributions for employees are deductible to the company
- Way to divest from the business – Sometimes business owners invest the majority of profits into the business and nothing into traditional retirement planning
- Attracting and retaining top talent
- Offers asset protection
Common small business retirement plans are Solo 401k, 401k, SIMPLE IRA, and SEP IRA.
Which one is right for you?
This flow chart along with the following details can help you decide which plan may work best for you. There are other factors to consider than are listed here, so please speak with an Allgen advisor before finalizing the right choice for your business.
At Allgen we have helped many clients strategize and implement these plans. We welcome the opportunity to find the right design for you. Contact us at advisors@allgenfinancial.com.
Written by Teresa Talton with Allgen Financial Advisors, Inc.
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