Small Business Retirement Plans in Syracuse, NY
Also Servicing Utica, Rome, Cortland, Auburn, Fulton, Oswego, and Surrounding Areas
Having trouble staying competitive and attracting the best candidates for your positions?
Talented prospects consider their retirement plan options when selecting an employer, your lack of options could be costing you the best choice of talent.
Options for Small Business
So, where do you start? Here is a rundown of your retirement plan options. The best plan will vary depending upon your needs.
Simplified Employee Pension Plan (SEP IRA)
If you have just a handful of employees and are looking for a plan that is truly low cost and low maintenance, then consider a SEP IRA. The plan is funded with tax-deductible employer contributions, and you must cover all eligible employees. Employee contributions are not allowed.
Savings Incentive Match Plan for Employees (SIMPLE IRA)
SIMPLE IRAs are good for your employees. They allow employee contributions. And, they mandate an employer match. Trouble is, a SIMPLE IRA won't let you save as much for yourself. Annual contributions are generally limited plus an employer matching contribution.
Profit Sharing Plans
A profit sharing plan gives your employees a piece of your company's profits. Annual contributions are made to your employees account, but because they are based on your company's performance, they'll likely vary from year to year.
Money Purchase Pension Plans.
Contributions to a money purchase pension plan are fixed and are not based on your business profits.
Think your business is too small for a 401(k)? Think again. Recent pension reform legislation has created new retirement vehicles to help small business owners shelter a significantly greater portion of their income from taxation that they were previously unable to do with conventional business retirement plans.
Single Ksm is a plan designed specifically for owner-only businesses that employ a spouse or the owners' immediate family members. It's also designed for businesses with part-time employees who are not eligible to participate in the plan. If your business fits this description - whether it's a corporation, partnership, sole-proprietorship or non-profit entity - Single K may be for you.
- All contributions are immediately 100% vested
- May require filing of Form 5500 if assets exceed certain limits
The 401(k) plan is designed for businesses of all sizes that wish to have their employees share responsibility for retirement savings. With features such as availability of loans and hardship withdrawals, the 401(k) is one of the most flexible retirement plans available. As a result of these extra features, the 401(k)s require more administration than other plans.
- Higher cost than other plans
- Requires filing of Form 5500
- Nondiscrimination and top-heavy testing required
Safe Harbor 401(k)
If you like the features of a 401(k) but not the cumbersome non-discrimination plus top-heavy testing requirements that accompany it, you may find a Safe Harbor 401(k) to be a viable alternative. Safe Harbor 401(k) plans may be suitable for companies with highly compensated employees who are limited in how much they may contribute to a 401(k) because non-highly compensated employees are not participating or contributing enough to the plan.
- Highly compensated employees can maximize contributions to the plan each year, even if lower paid employees contribute very little
- Nondiscrimination and top-heavy testing is automatically satisfied for Safe Harbor employer contributions and employee deferrals
- Safe Harbor 401(k) offers all the same benefits as the traditional 401(k) plan
The above listed products are offered independently through Hazard & Siegel, Inc.