Small Business Retirement Planning
If you’re a small business owner, it may be a smart move to consider retirement planning.
Depending on the size and structure of your business and the amount you believe you can afford to contribute, our accomplished business attorneys, who also hold master’s degrees in taxation can help. We advise clients on the full-scale legal issues regarding retirement planning and minimizing taxes.
Our Denver - based business attorneys are authorities regarding pensions, profit-sharing plans, deferred compensations and setting up retirement plans and IRAs. We have a wide range of experience in the conception and implementation of complex estate plans associated with employee benefit plans as well.
There are dozens of small business retirement plans to choose from. Our skilled attorneys can help you choose the plan that would best benefit you and your business. Essentially, there are six basic type of small business retirement plans to choose from:
The MyRA has a minimum deposit of $25 per employee, $5.00 minimum per pay period with a maximum contribution of $5,500 per year, $6,500 if the employee is over the age of 50. This “G” government fund currently earns 1.87% and is a Roth IRA (after-tax dollars). When the contributions reach $15,000, the employee must roll the money into a privately held Roth IRA.
The Simple IRA Savings Incentive Match Plan is designed for employers with less than 100 employees. An employee can contribute $12,500 yearly, $15,500 if over the age of 50. The employer can match the employee’s contribution, contribute up to 3% of the employee’s compensation or make a 2% non-elective contribution.
A Simple 401(k) is similar to the IRA but can allow loans from the plan. This plan is recommended for employees earning less than $50,000 a year.
The SEP IRA (Simplified Employee Pension Plan) has a very high contribution limit for the very small or owner-only business. Only employer contributions are allowed. Contribution can be up to 25% of the yearly salary to maximum of $55,000.
A Solo 401(k) plan is for one participant, wherein the employer/employee can maximize contributions if his income is too low for a SEP-IRA plan and can include the owners’ spouse. Annual contributions can be $55,000 or $61,000 if you’re over the age of 50.
The Fixed Benefit Plan, referred to as a Pension, is beneficial for high-income professionals, typically doctors, dentists, lawyers or family businesses. Money is paid into the Plan with a set payout at retirement. The maximum yearly contribution is one that’s projected to yield a benefit equal to $220,000.
We offer a wide variety of business law services related to retirement plans including estate planning, state and local taxes and asset protection.
Gantenbein Law Firm's business attorneys can expertly assist your way to retiring your small business successfully, with a well-executed retirement plan.
Call 303-618-2122 to schedule a consult.
Located in Denver, Colorado.