Having a secure retirement is an important goal for anyone, but especially for small business owners who lack the retirement benefits offered by larger corporations. One great way to help secure retirement savings for small business owners is to set up a Simple IRA plan.

A Simple IRA, which stands for Savings Incentive Match Plan for Employees, is an employer-sponsored retirement plan that allows employees and employers to contribute to an individual retirement account for each employee. The employer contributes up to 3% of each employee’s annual salary, and then the employee can choose to contribute up to $12,500 in pre-tax income for 2020. The total contributions an employee can make to a Simple IRA plan, including employer contributions, is capped at $13,500 for 2020.

There are many advantages that a small business owner can gain by setting up a Simple IRA plan for their employees. The most noticeable benefit is that contributions to a Simple IRA are tax deductible from the employer’s income taxes. This means that the employer can save money on their taxes while providing a benefit to their employees.

In addition, employees also benefit from a Simple IRA plan. They can save money on their taxes, as the contributions they p>