What Type of Small Business Retirement Plan Is Right for My Business?

If you are the leader or team member of a small business, you are probably used to wearing more than one hat at a time. With the staff or resources of a larger corporation, you could have whole departments dedicated to plotting and building your business retirement plan. But all of this could fall on you as the leader of your smaller company.

Why Should My Small Business Have a Retirement Plan?

It is simple to say that we all should be saving for retirement, but it can be a complicated hill to climb when managing your different retirement accountsGJR Consulting is here to help your small business figure out which plan is right for your organization. 

Having a retirement plan sounds sensible because most of us would like to reach retirement age one day with a comfortable sum of money, but that is not the only reason to set up a retirement plan for your small business. The steps you take now will not just help you; they will also have a major impact on the lives of your employees. The plan a small business owner offers might be the best option for employees to navigate their own retirement strategy. 

Speaking of your employees, offering a retirement strategy makes your business more attractive to new employees.

It can also help enhance retention by encouraging your workforce to stay with your plan. Providing a better quality of life for your employees is something that all business leaders should strive for, but those are not the only reasons to look into retirement with GJR Consulting. We will look into the potential tax benefits you could have from offering a plan to your employees, depending on the details of your business. 

Most 401(k) plans offer an arrangement whereby the employer matches the employee’s contribution. These contributions are tax deductible for the business owner as a business expense. There is nothing wrong with being pragmatic about the profitability of your business and taking advantage of every opportunity. Besides, an employer matching program works in favor of both the business and the employees at the same time.

Is It Just a Question of What Is the Best 401(k) Plan for My Small Business?

When business owners first come to us, many of them will say they just want a 401(k) plan. That is often the answer because it is the plan most people know about and understand, but it is not always the best or only option. GJR Consulting is equipped to assess your business and make recommendations for what type of retirement accounts would suit your situation. We’ll examine your number of employees, your financial goals, and the tax implications of your industry. From there, we’ll make recommendations and assist you in setting up and managing your accounts. 

What Are the Questions I Should Ask When Considering a Small Business Retirement Plan?

When you contact us about building your unique retirement portfolio, we’ll be able to answer many of your questions and give you a list of the options that are available for businesses like yours. The struggle that some business leaders have is wondering what questions they should ask in the first place and what points should get the most attention. 

These are just a few of the questions you can have in mind when you begin to consider your business retirement planning.

What Is a Simple IRA Plan?

This type of plan is best for businesses that have 100 or fewer employees. It is similar to a 401(k) plan because it also relies on a combination of tax-deductible employer contributions and pre-tax employee contributions

Is Retirement Plan Administration a Concern?

Some businesses have the ability to dedicate an employee to handling their retirement plan, and others do not have the available resources. You might be better off selecting a low-maintenance option that can run without much interference from anyone on a day-to-day business.

Is Employee Contribution a Critical Component to the Plan?

There are many advantages to a plan that relies on employee contribution, but it is not right for every work environment. Think about your workforce, how they manage their funds, and what is best for the business. You can come to us with an answer to all of these or just more questions; either way, our team will be prepared to help your business build a plan for the future.

Don’t Be Afraid of How Much You Don’t Know About Retirement Planning

Everyone is starting from a different point of view and level of knowledge in retirement accounts. Our services are here to offer support and educate you on everything you need to know to make informed decisions. From there, our team is ready to bolster your plans with practices like accountingtax planning and preparation, and payroll services like cash flow management. To learn more about the methods and practices offered by GJR Consulting, contact us today.