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What types of retirement programs can I set up in my company?If you own a small business, then you should know what types of retirement programs you can set up in your company.Knowing your different options can help you maximize the value of your retirement programs for both yourself as an employer and also for your employees.For more in depth information on the retirement programs that are available, you should contact your local IRS office and also check out the following website at the Department of Labor: The Department of Labor has a special group set up called the Employee Benefits Security Administration that helps distribute pension plans and also can help you as an employer know what your options are.Contact the EBSA for more information and greater detail when you are trying to set up your retirement plan to make sure that you are complying with all of the rules and regulations.
There are a number of different retirement plans that are available and designed particularly for small businesses.These different retirement plans are specifically geared to ensure that both employers and employees are protected and are able to enjoy a safe retirement.The following information is for any small business that hires anywhere from one to one hundred employees. There are three different general retirement plans, based on who the contributor(s) is (are):
In this case, you have three options available to you: the SIMPLE plan, the 401(k), and the defined benefit plan. The advantage of the SIMPLE-IRA plan is that it doesn't require much paper work, and it simply takes the contribution directly out of the employee's salary. The employer also has the option to contribute to the employee's retirement funds, if desired. The advantage of the 401(k) is that the employee has the ability to contribute more to his or her retirement account than is possible with any other plan. With the 401(k), the employee contributes through salary reduction contributions.The employer also has the opportunity to contribute. |
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