As a small business owner, retirement planning falls on your shoulders. You don’t have to offer retirement options, but doing so allows you to attract top employees. While working with an accounting service is recommended to ensure you choose the best option, the following are a few retirement plans from which to choose 

SEP-IRAs

Simplified Employee Pension plans, also known as SEPs, are ideal for business owners with very few employees or owner-only entities. Employers are obligated to make contributions for all employees, which makes it cost-prohibitive for larger businesses. However, you don’t need to file SEPs with the government, and you’re not obligated to contribute every year. 

Simple 401(k)

Conventional 401(k)s are associated with income tests, which may be challenging for some small businesses. This is not the case for simple 401(k)s, which makes it a viable option for workers who earn a reasonable income but aren’t considered well-off. Additionally, those participating in simple 401(k)s can receive loans from the plan, which makes them a versatile retirement option for workers and business owners. 

Defined Benefit Plans

If you want to reward those employees who’ve stuck with your business for the long haul, a defined benefit plan might be right for you. This plan protects retirement funds from tax obligations, which is a concern for many people who earn high incomes. If you want different employees to be able to contribute at different levels, the cash balance option is preferred over the pension equity plan. Additionally, the money can be transferred into an IRA upon retirement. 

For small business owners, having access to reliable accounting services ensures the right decisions are made when it comes to retirement planning and other issues. In High Point and Greensboro, NC, Sharrard, McGee & Co., PA offers the benefit of more than four decades of financial experience. Whether you have questions about retirement planning for you and your workers or need assistance with tax preparation, these accounting services professionals are ready to help. They also perform audits on existing employee retirement plans to ensure you’re making the best decision for your business. Call (336) 884-0410 to schedule a consultation or visit them online for the full list of services.