Best Retirement Plans for Orange County Small Business Owners

8:32 pm Business Planning, Retirement Planning

retirement plan e1326494532376 Best Retirement Plans for Orange County Small Business OwnersOne of the advantages of choosing a Newport Beach business planning attorney who also has an estate planning practice is when you need counsel on the best retirement plans for your small business.

While you want to choose a plan that will be fair to your employees and provide the appropriate tax benefits, you don’t want a plan that will erode your company’s liquidity.  Here are some options for Orange County small business owners:

SIMPLE IRA.  A Savings Incentive Match Plan for Employees (SIMPLE) IRA will not allow employees to contribute as much as they could with a traditional 401(k), but it does require an employer match.

Traditional or Solo 401(k).  Both of these 401(k) options provide a lot of versatility in terms of employees being able to access them for loans and employers being able to choose whether or not to match contributions.  For employees over 50, they offer catch-up and Roth options that tax contributions upfront instead of at withdrawal.  A Solo 401(k) is good for sole proprietorships or partnerships; if you have additional full-time employees, you won’t qualify.

SEP IRA.  This is a totally employer-funded plan with no employee contributions; a SEP IRA does not allow for loans, catch-up contributions, Roth or profit-sharing options.  The upside is that a SEP IRA has more relaxed tax reporting requirements and earnings grow tax deferred.  Sole proprietorships, S and C corporations, partnerships and LLCs qualify.

Help is available to you by contacting your Southern California financial planning experts today.

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