Have you been hesitant to set up a retirement plan for your company? Perhaps you’re worried that starting a retirement plan will be too expensive and you won’t be able to maintain it. Or maybe you’re concerned that your employees won’t benefit as much from it as they think they will.
Whatever your reasons are for delaying opening a retirement account, you should strongly consider starting one for the reasons outlined in this article.
Starting a Retirement Plan is Easy
Typically, it only takes a short conversation with a qualified plan provider in order to initiate a retirement plan for your business. All you need to do is to perform some preliminary research on what type of plan will benefit you most, then talk through your options with a provider.
From here, your provider will educate you on which options they offer and which may provide the most positive outcomes for you and your employees.
Just be careful! You’ll want to be sure that your chosen plan provider allows for all of the following:
- Easy modification and set up of plan. You shouldn’t have to spend a ton of time trying to figure out how to make the changes you want. Your time is valuable!
- Excellent customer service. At one point or another, you’re probably going to have questions about your plan. When this happens, you need to have a way to reach a helpful customer service representative through phone, chat, and/or email.
- No hidden fees. Unfortunately, some plan providers will impose extra fees on their service. While it may not seem like a lot at first, this money can add up significantly over time.
There are Multiple Different Types of Small Business Retirement Plans
According to the experts at Ubiquity, there are 3 retirement plans available to small businesses. These include:
- The SEP Plan. The Simplified Employee Pension Plan is a retirement option which enables business owners to contribute money to their employees’ IRA plans. The amount contributed can vary by the year, and employers can even decide to not contribute at certain times.
- The SIMPLE IRA. The Savings Incentive Match Plan for Employees is a plan that enables both employees and employers to contribute to a retirement account. While similar to a 401k, this plan differs in a few key ways. For example, SIMPLE IRAs allow for lower contribution maximums, resulting in these plans being easier to set up and maintain.
- The 401k Retirement Plan. The 401k plan is the small business retirement plan that allows employees to save the most money each year. Additionally, contributors to 401k plans have the flexibility of making Roth (after-tax) or traditional (pretax) contributions. But because the 401k offers more compelling options to employees and employers, it comes with extra requirements such as more paperwork and cost in order to maintain.
Are you ready to start a retirement plan for your small business? If so, don’t wait! Call a provider today!