Build Financial Security with a Business Retirement Plan

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Build Financial Security with a Business
Retirement Plan
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• Congratulations! If youre reading this, it must
  mean your business is generating enough profit to
  afford employees, require tax planning and give
  you the prospect of a healthy financial future.
  When you have more profit than you need to run
  your business operations, its time to start a
  business retirement plan. Businessman Investing
• Just like parents tend to put their children
  first and take care of themselves last, business
  owners have a tendency to place the needs of
  their businesses before their own needs. Starting
  a business retirement plan is usually a low
  priority not only because of the effort and
  expense involved, but the benefits to the
  business arent obvious. Some business owners
  think that retirement plans only benefit
  employees. The reality is that they mainly
  benefit the business and the business owner.

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• Most employees dont contribute or contribute
  very little to retirement plans, whereas business
  owners who take full advantage attract
  higher-quality employees looking for
  comprehensive benefits, get large tax deductions,
  and build financial security for themselves and
  their families. The money you deposit in your own
  business retirement account is deductible, but
  unlike other business expenses, youre not
  actually spending the money. You get to keep
  itso not only are you saving on taxes, youre
  also building a nest egg.
• An accountant and broker/financial advisor can
  help you determine and set up the right plan for
  your business

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• Self-employed The SEP (Simplified Employee
  Pension) IRA allows you to deposit up to 25 of
  net earnings (net profit minus half of
  self-employment taxes and your deposit amount).
  Consult your accountant to help you determine
  your allowable contribution each year. Expenses
  are minimal and there are no required
  contributions, so you can skip contributions in
  slow years. If you need a higher tax deduction,
  consider the SIMPLE (see below) or the solo 401k,
  which has higher expenses but allows an
  additional contribution of 17,000 in 2012 (or
  22,500 if youre over age 50).
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• Small businesses with under 100 employees The
  SIMPLE (Savings Incentive Match Plan for
  Employees) IRA allows you to contribute up to
  11,500 in 2012 (or 14,000 if youre over age
  50) as long as you make an employee contribution
  as well. You can choose from a matching
  contribution of 3 where you only have to
  contribute for employees who contribute
  themselves or a 2 contribution to all employees
  regardless of whether they make contributions on
  their own. Expenses are minimal. If youre
  willing to pay higher expenses for a higher tax
  deduction, see the choices for large businesses
  below.

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• Large businesses A multitude of plans are
  available including pension, 401k and profit
  sharing. Expenses are higher but so are the
  contribution limits and the flexibility to design
  exactly the type of plan you want.
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• Now that your business is growing up, its time
  to start taking care of yourself too. A
  Retirement Plan Company can benefit yourself and
  your business. Its important to stay on top of
  your financial game throughout the entire life of
  your business, so plan smart and plan ahead.

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