Resources

Discover how early contributions unlock maximum SEP IRA benefits and SIMPLE IRA advantages. Learn strategies for small business growth and effective cash flow planning.

For many people, reaching a financially secure retirement may seem more like an unrealistic daydream than a future reality. Too few people are adequately saving for their retirement, too many are relying on Social Security to fund their golden years, and too often, employees don't have a savings plan available through their employer to help.

Small business owners who decide to set up a retirement plan to benefit themselves and their employees may consider a Simplified Employee Pension (SEP) IRA. Not only is it a low-cost option for the employer, but it doesn’t require the same IRS reporting and plan testing involved in running conventional retirement plans.

There are many benefits that come along with self-employment and running your own business ; you make your own work schedule, you’re passionate about what you do, and you’re in full control—just to name a few. One benefit that may be few and far in between in self-employment, however, is benefits.

Small business owners looking to implement a retirement plan for their small business commonly decide a SIMPLE IRA is a good savings vehicle for them to start out with; it’s a low-cost option that is pretty easy to run and offers employees a place to save for retirement. However, as the business grows and business owners start to experience limitations in the plan, many outgrow their SIMPLE IRA and begin to think about upgrading to a 401(k) plan.