Providers that specialize in k plans for small businesses help make the task easier. If you are a small business owner considering initiating a k plan for you and your employees, here are 10 such retirement plan providers to look at:
Do you have, or expect to have, any "common law employees"? Do you want your employees to be able to contribute their own money too?
Which is a higher priority—maximum contributions or simple administration? So it should come as no surprise that funding your retirement will likely fall on your shoulders. But what type of retirement plan is the right fit for your business?
There are several types to choose from and the options can be confusing. For example, some small-business retirement plans are better for sole proprietors, while others may be more appropriate for businesses with up to employees.
We will focus only on the first 3, which are generally more suitable for very small businesses—typically, employees or less. Each of these plans has different characteristics—such as the ability to cover employees, contribution limits, and administrative responsibility, to name a few.
To choose the right plan for your business, you need to understand the nuances of these plans and match them to your priorities e. Understanding the differences in the plan types is an important exercise.
Why have a small-business retirement plan? Here are 3 very compelling reasons: Your plan not only helps secure your future—it may be the primary way your employees can help secure theirs.
Offering a plan helps make your business competitive when it comes to attracting and keeping good employees. There are potential tax benefits to offering a plan, because plan contributions for the business owner are deductible as a business expense.
Consider your options Each of the 3 small-business retirement plans may offer certain tax advantages, including: Contributions are made by the employer only and are tax deductible as a business expense. A SIMPLE IRA is for businesses with or fewer employees and is funded by tax-deductible employer contributions and pretax employee contributions [similar to a k plan].
A Self-Employed k plan is a tax-deferred retirement plan for self-employed individuals that offers the most generous contribution limits of the 3 plans, but is suitable only for businesses with no "common law" employees, meaning any person working for the business who does not have an ownership interest.
Choosing the right plan takes careful consideration "If you know what you are trying to accomplish with a retirement plan, it may be relatively straightforward to determine which plan is most appropriate for the business," Hevert says.
Is it critical that employees be able to contribute to the plan? Knowing what you want and need ahead of time is a key component, because each plan has its advantages and disadvantages.ADP’s small business (1 to 49 employees) division provides integration of payroll and recordkeeping with (k) plans, an important benefit for small employers.
|Who are the Best (k) Providers for Small Business?||One recordkeeper moved into the number two spot, bumping most of the rest of the group down in rankings. Alliance Benefits Group jumped into the number two rank, from not even making the list the previous year.|
|How do you determine who is the best 401(k) provider for your business?||William Carpenter April 28, — 7: With a multitude of providers now offering packaged k plans specifically for small businesses, it has perhaps never been easier to get started.|
|American Funds||Retirement Plans for Small Business High-impact plans for smaller firms and startups For smaller firms, selecting the right plan is especially important. Your benefits are a valuable tool for attracting and retaining top talent.|
Fidelity’s Savings Investment Match Plan for Employees (SIMPLE IRA) makes it easier for self-employed individuals and small businesses with or fewer employees to offer tax-advantaged retirement plans. Only certain fund families have mutual funds that are eligible investments for SIMPLE IRAs. Fidelity’s (k) plans for small businesses through Fidelity Workplace Services can help you offer competitive benefits to your employees.
Attract and keep qualified employees Offering a retirement plan is a smart way to help level the professional playing field . Plans for Small Business Owners. You work hard for your money. Make sure it's working hard toward your future goals as well. Choose from three small business retirement plans from Fidelity, the retirement leader.
If you're like many small business owners and self-employed people, odds are you may be spending a lot of time running your . Schwab offers plans for businesses of any size.
Use the information here to begin narrowing your options, or simply give us a call for help choosing the right plan for your business, whether your company employs one or many. Using the PlanSponsor data, we are defining a top small business (k) provider by the number of plans, with under $10 million in assets, that each recordkeeper is servicing.
For mid-sized businesses, we are are looking at the data for plans with $10 million to $ million in assets – once again, using the PlanSponsor data.