Have you been spending all of your time working on your small business? It can be easy to focus on a few tasks from marketing to product development to comparing low interest business loans. But don't neglect researching the best retirement plans for small business owners.

You may love working on your business now. But eventually, you and your employees will want to retire, and you need to prepare for that.

Read on for some answers to questions, like what is the best retirement plan for a small business owner?

What Are Retirement Plans for Small Business Owners?

Retirement plans for small business owners fill your specific needs when you own a business. Since you don't have a traditional employer, you're responsible for saving money for your retirement. And you have to decide what type of retirement plan to get for yourself.

If you have employees, you can also offer retirement benefits to them. Like with a larger company, the employees can get benefits for working full-time.

Small business owners and self employed people can choose from a few types of plans. That way, you can select the plan that best meets your needs.

Best Retirement Plans for Small Business Owners Without Employees

If you don't have any employees in your small business, you should consider a few options for saving for your retirement. Whether you're early in your career or are nearing retirement, you should select the best plan for you.

Traditional IRA

One of the easiest types of retirement plans to set up is an individual retirement account (IRA). A traditional IRA is an account where you contribute throughout the year. The money you put in the account is tax-free when you deposit it.

You'll only need to pay taxes on the money when you withdraw it during retirement. If you need to withdraw the money early, you will need to pay the taxes and a penalty.

Roth IRA

A Roth IRA is similar, but you pay taxes on the money you deposit now. That can be useful when you don't have employees because odds are your income is relatively low. Once your business grows, you will make more money.

If you have a higher income in retirement, you won't have to pay as much in taxes. So if you want to get paying taxes out of the way, a Roth IRA is advantageous.

Simplified Employee Pension (SEP)

A simplified employee pension (SEP) is one of the best retirement plans for small business owners without employees. You can contribute money to the account just like any other retirement plan for small business owners.

When you don't have employees, you can set up an account for yourself. If you hire employees later, you can set up accounts for them. But they won't contribute, only you, the employer.

Savings Incentive Match Plan for Employees (SIMPLE IRA)

Another one of the best retirement plans for small business owners is a savings incentive match plan for employees (SIMPLE IRA). This plan is great if you want to save a lot for retirement. You can contribute up to $13,500 a year from your net earnings.

To get started, you will need to fill out some forms from the IRS. Then, you will need to find a bank where you can create the account.

401(k)

When you think of retirement plans for self employed people, you may not think of a 401(k). But you can set up an individual 401(k) and use it like you would a 401(k) through a traditional job.

Like traditional IRAs, 401(k)s use pre-tax money, so you don't have to pay income tax on what you contribute. And you can save up to $19,500 a year or more if you're at least 50 years old.

Benefits of a Retirement Plan for Small Businesses

One of the most significant benefits of a retirement plan for small businesses is the ability to plan for the future. When you have a traditional employer, they can help you save for retirement. But that falls on you when you work for yourself.

And even if you don't have employees now, you may hire people later on. Having a retirement plan now can save you a lot of stress.

Now, you may be wondering, "are small businesses required to offer retirement plans?" You don't have to offer retirement plans. However, if you want to attract the best employees that will promote good communication in business, having a retirement plan can help convince people to work for you.

How to Save for Retirement as a Small Business Owner

You should know how to save for retirement as a small business owner, no matter which plan you choose. Regardless of the plan you have, you should set aside the same amount of money from each paycheck.

If you don't have a regular paycheck or salary, aim to save a certain amount of money each month. Then, you can calculate how much you need to save to max out your account. For example, if you have an IRA, you can save $500 a month for the maximum of $6,000 a year.

Best SIMPLE IRA Providers for Small Business

If you've chosen to go with a SIMPLE IRA, you should compare providers. The best SIMPLE IRA providers for small business can vary from business to business. Some providers to check out include:

• Charles Schwab
• Edward Jones
• Fidelity
• Merrill Edge
• TD Ameritrade

Be sure to consider if you have employees or want to have them. Then, you can make sure you'll be able to support the number of accounts you need. You should also consider how easy it will be to deposit money into the SIMPLE IRA accounts. And don't forget about account fees or how easy it will be to contact the provider with questions or concerns.

What Is the Best Retirement Plan for a Small Business Owner?

When you own a business, you have a lot on your plate. It can be easy to let saving for retirement slip away. But you need to know about the best retirement plans for small business owners.

That way, you can compare the various types of accounts and providers. Once you settle on the best account and provider, you can set everything up for you and your employees. Check out our blog if you need other tips for stress management for business owners.

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