Business Retirement Programs
Retirement Plans to Fit Your Business
If you’re self-employed or own your own business, you’ve probably established some kind of retirement program for your company. But as your business has evolved, has your retirement program evolved with it? Do your original choices still make the most sense, and provide you and your employees the best return?
The experts at B.O.C. Financial Services can provide you with a complimentary analysis of your current situation, and propose a customized retirement program that draws from one or more of the following:
A SEP IRA allows employers and self-employed individuals to establish a simple business retirement plan. The plan is flexible and allows you to make deductible contributions directly to a Traditional IRA for all qualified employees. As the employer, you may choose whether or not to make contributions from year to year.
A SIMPLE IRA (Savings Incentive Match Plans for Employees) is for companies with less than 100 employees who do not have another qualified retirement plan. This plan is flexible and partially funded by employees. Employer contributions are not currently taxable to the employee and earnings accumulate tax-deferred.
If you own a family business and you employ only immediate family members (which includes your spouse, grandparents, children and/or grandchildren), this may be a great option for you.
A 401(k) program is a salary deferral plan for employees. Employers may establish a matching fund (whose contributions are tax deductible for the business*) for employees’ deferrals. The employer may make discretionary contributions to the matching fund any year, as long as allocation is nondiscriminatory.
A profit sharing plan allows you to control your company’s plan. You have the option to make a discretionary contribution on behalf of your eligible employees and can choose to vary your contribution from year to year.