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Large corporations can offer exceptional wages and attractive non-financial compensation packages to attract the best talent for their team. Consequently, small businesses can feel disadvantaged when trying to compete.

If you’re a small business owner, you can improve the appeal of your firm by offering a small business retirement plan. Doing so can help persuade job candidates to give your company a try. Additionally, a retirement plan can encourage employee satisfaction and retention rates.

Don’t forget about you. As a small business owner, only you can prepare yourself for retirement. In other words, offering a retirement plan benefits both you and your employees.

After deciding to offer a retirement plan, how should you proceed? Already, you probably stay busy all the time. Furthermore, you may lack the knowledge and skills needed to create a plan that works.

Continue reading to learn about several types of small business retirement plans that you can choose from.

SEP IRA

Self-employed people and their employees can participate in a SEP IRA plan. As an employer, only you can make qualifying contributions which can amount to as much as one-quarter of an employee’s AGI.

Simple IRA

Regardless of whether your business operates as a sole proprietorship, S-Corp, partnership, or corporation, a simple IRA can help you. If your firm employs 100 or fewer employees and doesn’t offer any other retirement plan, you can configure this type of IRA with a service provider for a small participant or plan fee.

If you choose this option, your business must comply with mandatory contribution requirements. Also, employees can contribute as much as all their eligible compensation up to a pre-defined amount.

Self-Employed 401(k)

If you’re self-employed and have no intention for hiring employees besides you and your spouse, this type of retirement plan may work well for you. Regardless of whether you’re a sole proprietor, partner, or corporation, you can set up this plan for either little or no charge.

As an employer, your business can contribute up to one-quarter of your eligible compensation. As an employee, you and your spouse can also contribute to your self-employed 401(k) account.

In conclusion, you don’t have to sacrifice either your retirement or your employees’ if you use one of the above small business retirement plans. When you’re ready, meet with your financial advisor or a qualified institution to learn about recent and upcoming changes that may affect the options available to you and your employees.