Best Retirement Plan For Small Business

A similar study conducted by the Guardian Insurance Company offered even more marked results, with 35% of small business owners surveyed reporting that they actually their businesses to fund their retirements.In answer to a separate question, 35% of respondents said they were depending on income from the sale of their businesses to retire.This plan offers the greatest possible contribution among retirement plans as it recognizes that you are both employer and employee.

A business will only sell if it can continue to operate as a going concern.

Is there a succession plan in place that will insure business continuity?

Manta, an online resource dedicated to helping small businesses promote themselves and gain new customers, surveyed nearly 2,000 small business owners in 2017.

Manta found that over a third (34%) of those surveyed don't have a retirement plan.

The responsibilities of owning and operating a small business can be overwhelming at times.

Every decision - from choosing printer paper to putting together a budget, creating a business plan, and looking for funding - is yours and yours alone.And don't forget market conditions, which determine if a business can be sold at an attractive price.The last thing any entrepreneur wants is to be forced into divesting at a fire-sale price.Also known as the solo 401(k), this is the retirement plan of choice for business owners who want to maximize their contributions to their retirement plans.The plan is suitable for sole proprietors, partnerships, C corporation and S corporation business owners.With so much to act on and think about just to keep your business in the black, it's easy to shunt aside longer-term planning Still, there are long-term planning issues that are critical to your personal success as a small business owner, and they aren't going away, particularly when it comes to planning for your retirement.You don't have the luxury of an employer offering a 401(k) or pension plan, complete with a selection of appropriate investment vehicles, to ensure your financial future. Too many small business owners avoid the crucial elements of planning for their futures.However, this change starts in 2018; Roth IRAs recharacterized in 2017 will still be allowed.There are a number of retirement solutions that can help you secure your future and that of your employees, but the decision-making process can be challenging.We compared the various features, and spoke to both small business owners and professionals in the retirement field. Michel, an Atlanta-based accountant who specializes in working with small business clients, noted that the SEP IRA is the most popular retirement savings option among his small business clients."The low fees, combined with a minimal administrative burden and lower maintenance requirements, make it a popular option." He notes that the solo 401(k) runs a close second, and many clients, particularly those focused on growing their businesses, appreciate the flexibility of being able to borrow against the assets.


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