Business Solutions
Business solutions can require some of the most complex financial planning. There are a few simple ways we can help reduce your tax liability with regard to tax deferral. Below are some retirement plan types that are common for small business owners:
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Simple IRA
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low cost to maintain, held at most mutual fund carriers
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Traditional (pre-tax) and or Roth (post-tax) contribution options
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no IRS filing, all contributions through payroll
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only expense at fund company within funds
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employee contributions and employer contributions (match or non-elective)
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SEP IRA (Simplified Employee Pension IRA)
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easy and low cost to maintain, held at most mutual fund, annuity, or brokerage carriers
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Traditional (pre-tax) and or Roth (post-tax) contribution options
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only employer contributions at discretion of employer, no employee contributions
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proportionately allocated by income of eligible participants
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see IRS calculation for limits and eligibility
401k Retirement Plan
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solo, traditional, safe harbor
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Traditional (pre-tax) and or Roth (post-tax) contribution options
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able to custom build a plan or use Safe Harbor streamlined plan
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bundle with single provider or use multiple providers
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administrator, recordkeeper, advisor
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Health Savings Account (HSA)
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pre-tax contribution
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tax deferral on growth
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if used for qualified medical expenses, tax free disbursement
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Profit Sharing Plan (PSP)
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generally high expenses and is added to a 401k plan
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adds additional tax deferral opportunity on top of 401k limitations
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employer discretionary contribution proportionately to eligible participants
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Defined Benefit Plan (DB)
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generally high expenses and allows the largest income deferral of any plan
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administrator, actuary, recordkeeper, advisor
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There are other options you may be interested in as well.
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Business Overhead (Disability and Life Insurance)
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ablility to maintain business if loss of function occurs
Business Buy-Sell Agreement Funding Vehicle (Life Insurance)
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funding vehicle if any business owner passes away to provide for a smooth transition