employers and employees alike. From tax savings to increased employee retention, the advantages for small business owners are easy to understand. Here we will outline the different types of retirement plans available to small businesses, and the many benefits they provide.

The first type of plan is the Solo 401(k). This plan is the most popular option for sole proprietors and small business owners. This retirement plan is relatively easy to set up and manage, and the employer will benefit from tax deductions on contributions up to $57,000 for 2020. Employees also benefit, with pre-tax deferrals up to $19,500. The employer can also choose to make additional contributions, up to 25% of the employee’s compensation, up to a maximum of $57,000. In addition, employees can make catch-up contributions of $6,500 if they are over the age of 50.

The second type of plan is the SEP IRA, which is a great option for businesses of all sizes. The employer contributes pre-taxed income to the account, and the employee’s contributions are made with post-tax dollars. This plan

Article Created by A.I.