Business owners who are considering a retirement plan for their business have many options.
While a traditional 401(k) is a well-known choice among business owners, there are many cases where other retirement plan options may be better suited for the business and the owner.
To help make this analysis easier, we have created the “Should I Set Up A Traditional 401(k) For My Business?” flowchart.
It addresses some of the most common issues that arise for a client looking to set up a retirement plan for his or her business.
This flowchart considers:
- Which plans may be better when there are no employees
- When a defined benefit pension plan could be set up
- Options to review when the goal is to contribute more than $57,000 per year
- Maximum employee contribution amounts for plans
- Which plans have mandatory matching contribution requirements
- Minimum employer matching contribution amounts
- Plans that offer more flexibility