Small Business Retirement Needs
According to the Small Business Administration, there are nearly 26 million small businesses in America. Considered the backbone of our nation’s economy, they create between 60 to 80 percent of net new jobs.  As many business owners can attest, such accomplishments don’t come without a large amount of risk and hard work. 

Given all the responsibilities that go into running a successful small business, planning for retirement may be one of the last items on your list.  Fortunately starting a small business retirement plan may be easier than you think.  There are a number of retirement plans that can provide tax advantages to both you, as the owner, and your employees. 

There are many plans tailored to the needs of self-employed individuals and small business owners.  To determine which plan is right for you and your business, consider the following:  plan funding, eligibility, vesting, ease of administration, and cost of the plan. 
Here are some additional accounts that may provide similar tax advantages: 

SIMPLE IRA
SIMPLE IRA is a savings incentive match plan for business owners with fewer than 100 employees.  This plan is well suited for employers who would like their employees to share responsibility for funding accounts by making their own contributions.  Some of the key benefits of this type of plan are its simplicity, low cost and ease of administration.  No discrimination testing or government reporting is required. 

SEP-IRA
SEPs are ideal for the self-employed person who wants a simple retirement plan that allows annual discretionary, tax-deductible contributions.  With this type of plan, generally only the employer is allowed to make contributions.  This type of plan may require top-heavy testing requirements. 

QUALIFIED PLANS INCLUDING 401(K) PLANS

Individual 401(k)
Commonly referred to as the Single or Solo (k), this plan offers benefits similar to the traditional 401(k) but requires much less administration.  It is designed for owner-only businesses that employ a spouse or the owner’s immediate family members.  The plan is also designed for businesses with part-time employees who are not eligible to participate in the plan.  Fortunately this plan does not require discrimination or top heaving testing.

Don’t Go It Alone
As there often seems to be an unmanageable number of variables in navigating your retirement picture, the aid of an experienced financial professional can be a valuable resource.
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CUSO Financial Services, L.P. (CFS) does not provide tax or legal advice. For such guidance, please consult your tax and/or legal advisor.