Small Business Tax Savings Podcast Empower Your Team: Choosing the Right Retirement Plan for Your Small Business with Employees
May 8, 2024
In this conversation, retirement planning expert Matt Ruttenberg shares his insights on selecting the best retirement plans for small businesses. He breaks down various options like SEP IRAs, SIMPLE IRAs, and Safe Harbor 401(k)s, emphasizing their unique benefits and alignment with business goals. Matt also addresses common misconceptions about retirement plans, particularly for hands-on trades, and highlights the recent tax credits that make these plans more accessible. Tune in to discover how strategic retirement planning can lead to significant tax savings.
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Prioritize Retirement Plan Goals
- Determine your top priority for offering a retirement plan: employee benefit, recruitment/retention, personal savings, or both.
- This helps narrow down suitable plan options and design, focusing on what matters most to your business.
Group Plan Considerations
- SEP IRAs aren't ideal for groups because employer contributions must be equal for everyone.
- SIMPLE IRAs are better for groups; offer Roth options, and employer contributions can be tiered or matched.
401(k) Options: Safe Harbor vs. Traditional
- Safe Harbor 401(k)s bypass annual testing limits, letting business owners maximize contributions regardless of employee input.
- Traditional 401(k)s allow customized vesting schedules for better employee retention.