Small Business Retirement Planning
Planning for retirement while owning a small business offers a number of retirement solution options. The latest estimate by the U.S. government concludes that an individual will need about 70-90 percent of their current salary to maintain their standard of living after retirement. By offering a retirement plan for your employees, you are providing a responsible and necessary asset to them that will benefit all involved in the future. There are a number of tax advantages for a business as well, including tax deductible contributions and tax-free growth in the retirement plans. It is possible to implement multiple retirement plans to give employees options for their financial future.
Retirement Plan Options
Each retirement plan has different pros and cons depending on the small business. The main groups of retirement plans are IRA-based, defined contribution plans, and defined benefit plans. The most common of these include the following:
- Simplified Employee Pensions
- Simple IRA Plan
- Profit Sharing
- Automatic Enrollment 401(k)
- Traditional 401(k)
- Defined Benefit Plan
Retirement planning is an important step in preparing both you and your business for the future. Consulting an accountant when deciding which plan is the best option for your specific circumstance may increase the potential benefits you can provide your small business.
Contact an Austin Retirement Planning Specialist
If you are interested in starting a retirement plan option for yourself or your employees, consult an accountant in Austin that is knowledgeable and experienced in retirement planning. Contact an accountant today by filling out the form at the top of this page in order to learn more information.