<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1594118447410323&amp;ev=PageView&amp;noscript=1">

Disclaimer

You are now leaving the Independent Bank website.

Linked web pages are not under the control of Independent Bank, its affiliates or subsidiaries. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. Independent Bank provides external links as a convenience and is not responsible for the content, accessibility, or security of any linked web page.

Click “OK” to continue or “Cancel” to go back

Ok Cancel

Disclaimer

You are now leaving the Independent Bank website.

Linked web pages are not under the control of Independent Bank, its affiliates or subsidiaries. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. Independent Bank provides external links as a convenience and is not responsible for the content, accessibility, or security of any linked web page.

Click “OK” to continue or “Cancel” to go back

Ok Cancel
x

Disclaimer

You are now leaving the Independent Bank website.

Linked web pages are not under the control of Independent Bank, its affiliates or subsidiaries. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. Independent Bank provides external links as a convenience and is not responsible for the content, accessibility, or security of any linked web page.

Click “OK” to continue or “Cancel” to go back

x Want to chat? How can we help you? open chat
Menu
Search
Locations
Login

Selecting the Right IRA for your Business

Pros and Cons of key retirement plans

Blog_-_Know_what_IRA_plan_is_right_for_your_business.jpgAs a small business owner, offering your employees an IRA retirement plan to help them fund their retirement nest eggs is not only a wonderful recruitment and retention tool, it also can provide some tax advantages to your business. Any employer contributions are deductible from the employer’s income, according to the Department of Labor.

You have more than one option when it comes to these plans. Here’s a look at some of your IRA-based choices, including the associated pros and cons:

SEP-IRA

According to the Department of Labor, the SEP-IRA is easy to set up and maintain, and is ideal for sole proprietors. It’s a plan that is for employer contributions only. The SEP allows you to sock away as much as 20 percent of your net income. However, if you have employees, keep in mind that you will need to contribute the same percentage of their salaries as you contribute to your own plan.

Simple IRA

If you have fewer than 100 employees and are interested in an employee contribution-based plan, the SIMPLE IRA is a good route. Through this plan, employees can decide how much they wish to contribute. (The maximum is $12,500 in 2016, with additional contributions of $3,000 for participants 50 and older.) Employers are required to make a matching contribution of 1 to 3 percent.

Payroll deduction IRA

Regular IRA contributions through your employees’ payroll are another option. Your employees decide how much they wish to contribute (the maximum is $5,500 this year, with a catch-up contribution of $1,000 for participants 50 and older). There are no additional requirements from you as an employer.

Other options

Defined contribution options, such as a traditional 401(k), or profit sharing are other alternatives.

 Contact an IB Wealth Management Representative

Join our newsletter!

Latest posts

Small Business Trends

5 Trends on the rise for 2022
Read More

Google Maps

Leveraging them for your small business
Read More

Online Business Reviews

5 Secrets for getting more
Read More

Small Business Productivity

5 Tips you should know
Read More