When you’re a small business owner, you’ve definitely got a lot on your plate. There is a ton of responsibility that comes with making sure that your company is running properly, and this is especially true if you’ve got employees for whom you’re responsible. When this is the case, you’re not only responsible for protecting your own livelihood, but you’re in charge of providing a living for all the individuals who work hard to help your business run as well as it does. Truly, it can sometimes feel like there’s nothing “small” about running a small business — in fact, the responsibility that come with this kind of duty can often feel rather big.
It can get easy to feel a little overwhelmed when you’re tasked with owning and operating a small business, to the point where it can even be easy to forget about planning for your own retirement. No matter who you are, you’ve got a ton of options available to you in terms of how you go about saving money for your retirement years. When you own a small business, though, you’ve got some unique options, as there are certain programs that were designed specifically with a small business owner in mind. We’ll talk about some of the best retirement planning tips for those of us who own a small business.
Many small business owners wind up going with one of the most simple options available — the Simplified Employee Pension Plan, which is also known as the SEP plan. This is a simple and straightforward retirement plan that’s perfect for you if you’re self-employed or if you run a very small business with just a few employees. For this type of plan, the employer makes tax-deductible contributions. The great thing about the Simplified Employee Pension Plan is that they’re very flexible in terms of the contributions you make each year, so they’ll work with you and the success of your small company.
Another great option is the Savings Incentive Match Plan, or the SIMPLE-IRA. When this plan is chosen, both the employer and the employee make contributions to a retirement fund, with the employer contribution being set at a fixed match rate. This is a great plan if you don’t have too many employees to deal with, but it does set limits on the contributions that you can make each year.
When you’re responsible for owning and operating a small business, it can be pretty tough to get fast cash and simply set it aside for retirement. There is a lot to think about and plan for when you’re trying to prepare for your retirement and run a small business at the very same time. These options, however, will definitely help you set aside some money while you take care of your employees in the process. Running a small business can be tough, but with a retirement strategy like one of these, you’ll be able to make sure that everyone is taken care of and adequately prepared for retirement.