Small business retirement plans: Which is best for you? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
How can you save for retirement while you’re operating your own business? At one time, small business owners were often left out in the cold. But saving for retirement isn’t just for the “big boys,” anymore.
Now, you can choose from several types of tax-favored retirement plans geared to small businesses and sole proprietors.
The chart below compares the main features of the four most popular alternatives for small businesses: Simplified Employee Pensions (SEPs), Savings Incentive Match Plans for Employees (SIMPLEs), Keogh plans and Solo 401(k) plans.
Note: Figures are based on 2006 tax-year limits.
For a more detailed comparison of these retirement plans, send an e-mail message to SBTSeditor@NIBM.net, with the subject line “Small biz retirement plans,” and we’ll send you our special report.