401(k) Plan, SEP IRA or SIMPLE IRA? What should a small business do?

6 Mar

Many small business owners are seeing increased tax rates hit them hard right about now.  With quarterly estimates up and ACA, and other tax increases coming into play since 2013, many small business owners are considering an idea like a retirement plan to help reduce income taxes and payroll taxes.

But what we’ve found in asking many Santa Rosa and Sonoma county business owners is that finding quality guidance on what sort of plan is going to work best for their business and employees is difficult to say the least.

A CPA may tell you to start one, but offer no guidance on whether a SIMPLE, SEP or 401(k) is best.  A financial broker friend may tell you “Yea, I can set that up” but you might find they truly have no expertise in guiding you through the different options and helping analyze which one best suits your company.

The best guidance you can get is from a knowledgeable financial adviser who doesn’t only do one or two 401(k)s a year but is keyed in on changing regulations, new plans available and how to help your company determine how it all works best for you.  If that adviser partners with a quality TPA firm, even better.

Many businesses opt for SEPs and SIMPLEs because they can ‘save’ money on the set up and annual fees.  Many soon find out that with these types of accounts, things are anything but simple!  Every business has a different set of circumstances that will dictate which options are best.  Work with professionals who know how to help you maximize tax savings while offering you and your employees a plan that truly is perceived as a benefit.  Paying a few dollars for this advice isn’t only a tax write off, it can save you time and money down the road.

Contact us if you’d like a free evaluation of what sort of plan would be best for your small business!



To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult a tax or legal professional regarding their individual situation. Neither M J Everson Financial nor Commonwealth Financial Network® provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation


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