How to retirement for small business
Planning for retirement can be overwhelming and complicated. But because the average American will spend about two decades in retirement, it makes sense for small business owners to learn the basics about the various retirement plan options available to them.
Offering a company-sponsored retirement savings plan has benefits that extend beyond your own well-being. Considering that only 14 percent of small businesses offer any sort of retirement plan for their employees, you can distinguish your business and attract top talent by providing this incentive. Though certain types of plans do not require you to contribute to your employees’ retirement plans, if you choose to, you also will enjoy a range of tax benefits.
Whether you’re managing multiple employees or just work for yourself, there’s an affordable option out there that’s right for you. Here are the most common types of retirement plans available to small business owners and self-employed individuals.
While the IRS website tells you exactly what you need to know about the plans, your employees might not have any idea what it actually means. Meadows advised employers to “talk in regular words [and] take the complication out of it” when explaining the plan to your employees.
Don’t understand the plan yourself, or have questions about your contributions as an employer? Consider hiring a financial adviser with plenty of experience in the industry, Meadows said.
“The best financial advisers are the people who have already done it,” he added.