Friday, 11 August 2017 14:16

Q: Why Are Small Business Retirement Plans So Complex? A: They May Be Simpler Than You Think — Consider These Two Plans

By Peter Sweetser | Families Today

The writer is a Retirement Plans Specialist at Fenimore Asset Management headquartered in Cobleskill, NY with a branch office in Albany.

Countless small businesses lack a retirement plan! This is startling, especially considering the fact that a retirement plan can help an entrepreneur achieve their long-term financial goals and attract and retain loyal employees. Running a small business is difficult. As an entrepreneur, you have numerous issues to juggle and may find yourself forced into matters that are beyond your expertise. You are likely to be crunched for time and may even place some beneficial initiatives on the back burner. Unfortunately, business owners, especially ones with a handful of employees, do not take advantage of the basic retirement plans that are available because of the misconception that they are complicated and time consuming. However, retirement investing can be easily understood and administered.

Ask yourself, “Who is saving for my future?” Just like many aspects of your operation, you have to be proactive and save for your retirement. Small business owners tend to pay themselves last, but I recommend that you get in the habit of treating your retirement contribution like a monthly bill and pay yourself first. 

Small business retirement plans are an ideal way to save for those golden years. Firstly, contributions for both you and your employees can be a tax deduction for the business. Secondly, contributions can grow tax-deferred until you withdraw your money in the future. 

Two of the options available to small businesses that can be effective and easy to implement are the Simplified Employee Pension (SEP) IRA and Savings Incentive Match Plan for Employees (SIMPLE) IRA. They both offer low-cost, tax-advantaged retirement savings opportunities for self-employed individuals and small business owners. A SEP IRA often works well if you are the only employee of the business or if it is just you and your spouse. A SIMPLE IRA is good for those who want to help not only themselves, but their employees as well. Additionally, if you have a SEP or SIMPLE plan through your company, you may also invest in your own Traditional or Roth IRA to supplement your retirement savings.

A good retirement plan can make it easier for an entrepreneur to achieve their financial objectives. It can also help attract and retain loyal employees while offering them the potential opportunity to grow their savings tax-deferred and retire comfortably. As Ben Franklin said, “You may delay, but time will not.”

Read 571 times

Blotter

  • COURT Temujin V. Bozeman, 60, of Saratoga Springs, was sentenced Feb. 7 to 1 year in jail, after pleading to felony DWI.  Mason A. Weber, 25, of Stillwater, pleaded Feb. 6 to felony burglary in Malta. Sentencing is scheduled for  April 10.  Sean D. Knight, 32, of the Bronx, pleaded Feb. 5 to felony DWAI, and aggravated unlicensed operation of a motor vehicle, a misdemeanor. Sentencing scheduled April 9.  Justin P. Rock, 32, of Saratoga Springs, pleaded Feb. 2 to felony burglary. Sentencing scheduled April 13.  Donald P. Gilbert, 22, of Milton, was sentenced Feb. 2 to five years of…

Property Transactions

  • TOWN OF BALLSTON  Lot 17, MacKenna Court, $356,194. John Paul Builders LLC sold property to Thomas and Michele Stamas.  4 Red Barn Dr., $444,853. Barbera Homes Kelley Farms LLC sold property to Gregory and Audrey Michalski.  Scotchbush Rd., $65,000. Charles Morris sold property to William Heflin. 136 Kingsley Rd., $80,000. Shawn and Rory Adair sold property to Rory and Timothy Adair.   CHARLTON 47 Crooked St., $400,000. Glenn Cook (as Trustee) sold property to David Griffiths and Allison Studley Griffiths. 1327 Sacandaga Rd., $249,000. Trustco Realty Corporation sold property to Jennifer and Lucino Venditti, Jr.   CLIFTON PARK 63 Westbury…
  • NYPA
  • Saratoga County Chamber
  • BBB Accredited Business
  • Saratoga Convention & Tourism Bureau
  • Saratoga Springs Downtown Business Association
  • Saratoga Mama