Small business retirement plans can take many forms, such as Simplified Employee Pensions (SEP), SIMPLE IRA plans, Solo 401(k) plans, and profit-sharing plans. Employees and employers can contribute pre-tax income, which can then be invested in a range of investment options.
Each type of plan has different requirements and technicalities, so it’s important to carefully consider which plan is best for your business and employees. Talk to an Intermountain Wealth professional today to find the best plan for your business.
Overall, small business retirement plans can attract and maintain talented employees, especially in a competitive job market. By offering a retirement plan and even possibly an employer contribution, businesses can help build employees’ retirement savings quickly.
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Small business retirement plans can take many forms, such as Simplified Employee Pension Plan (SEP), SIMPLE IRA plans, 401(k) Plans, Solo 401(k) plans, and profit-sharing plans. Employees and employers can contribute pre-tax income, and after-tax income (Roth) which can then be invested in a range of investment options. Employees can contribute up to $22,500 per year to a 401(k) plan, with a catch-up contribution of $7,500 for employees 50 and older. Employees can contribute $15,500 per year to a SIMPLE IRA with a catch-up contribution of $3,500 for employees 50 and older (as of 2023).
Yes, employers can contribute to small business retirement plans, and in some cases may be required to make contributions.
If the business closes, the retirement plan can generally be terminated and the funds distributed to the plan participants according to the plan's rules and regulations.
We at Intermountain Wealth Management strive to provide exemplary financial services for clients from all walks of life. Here are two reasons why this is important:
We help individuals put all the pieces of the puzzle together to make one clear financial picture.
With over 30 years of experience and a strong community network, we can help with almost any pain point or issue our clients may have. Instead of spending endless hours of work and stress on your own, let us help create a plan that is easy for you.