CHOOSING THE RIGHT RETIREMENT PLAN FOR YOUR BUSINESS

Selecting the right retirement plan is key to keeping your business’ bottom line healthy while meeting the needs of your employees. Making the right choice for your business is a crucial step, which is why helping you and your employees plan for retirement is a top priority.

Providing a retirement plan has many potential benefits. One is that contributions to a retirement plan can help you meet tomorrow’s goals of financial independence. Another advantage is that establishing a retirement plan may provide tax advantages to both employees and employer. Eligible contributions are deductible expenses to your business, and all contributions have the potential to grow tax deferred until withdrawn.

Still another benefit is that the right retirement plan can create positive employee relations, helping to attract and retain quality employees while reducing turnover. For many business owners, the question is not “Should I implement a retirement plan?” but rather, “Which plan is right for my business?” When examining your options, you and your financial advisor should first determine whether a defined contribution plan or a defined benefit plan is best suited to your needs.

• Simplified employee pension (SEP) plans – employer sponsored, tax-favored retirement plans for small businesses
• SIMPLE IRA plans – low-cost alternatives to company sponsored 401(k) plans
• Profit-sharing plans – featuring design flexibility and self determined contributions
• Safe Harbor 401(k) plans – giving all employees equal potential to maximize their deferrals
• Owner-only and one-person 401(k) plans – attractive alternatives to other qualified plans
• Defined benefit pensions – ideal for business owners and employees approaching retirement