Retirement plans help business owners save for retirement and attract the most talented employees. There are 6 main types of small business retirement plans that allow pre-tax contributions each year by employers and/or employees. Each type differs widely, ranging from $6,000 – $56,000+ in annual contributions, with some requiring employer contributions or match. When you’re…
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Safe Harbor 401(k) Plan: What it is, Contributions, & Matching Rules
A Safe Harbor 401(k) is a retirement plan allowing employers and high-earners to shelter income that would be considered “discriminatory” against employees in a standard retirement plan. Employers and high-earning employees can shelter $56,000-$62,000 per year from income tax without falling out of compliance by providing matching contributions to employees. ShareBuilder 401k can help small…
Self-Directed IRA: Rules, Services, & Checkbook Control
A self-directed IRA is a tax-deferred retirement account that allows you to directly manage your investments and buy alternative assets that aren’t available in traditional IRAs. An account with a self-directed IRA service costs more to set up and maintain but allows you to invest in things like real estate, private companies, and precious metals….
SEP IRA vs. Solo 401(k): Costs, Contributions, Rules & Which is Best
A SEP IRA vs. Solo 401(k) is a terrific option for business owners with few or no full-time employees because employers must fund all employee contributions, proportional to their own. Conversely, Solo 401(k)s are only an option for self-employed individuals with no full-time employees, although they have the same contribution limits, costs and deadlines as…
SEP IRA Rules, Contribution Limits, & Deadlines
A SEP IRA is an employer-sponsored retirement plan allowing business owners with 0 – 5 employees defer large amounts of income. A SEP lets employers and the self-employed contribute $56,000 or 25% of their taxable income each year – $50,000 more than Traditional IRAs. To use SEPs, employers must make proportional contributions to all full-time…
SIMPLE IRA Rules, Providers, Contribution Limits & Deadlines
SIMPLE IRAs are employer-sponsored retirement plans allowing participants to save up to $26,000 pre-tax in deferrals and matching. Using a SIMPLE IRA, employers must match employee deferrals on a dollar-for-dollar basis between 1% – 3%. To use a SIMPLE IRA, employers must implement their plan before October 1 of the year it becomes effective. Alternatively,…
Traditional IRA: Rules, Contribution Limits & Deadlines
An individual retirement account (traditional IRA) is a tax-deferred investment account that allows account holders to contribute up to $6,000 per year pretax as a way to save for retirement. Account holders can invest to grow their IRA without paying any taxes on contributions or gains until money is withdrawn from the account during retirement. A…
SEP IRA vs SIMPLE IRA: How to Choose the Right Plan 2018
Business owners comparing a SEP IRA vs SIMPLE IRA will find that each has unique benefits and works better in certain circumstances. SEPs have higher contribution limits ($56,000) but require employers to fund all employee contributions. SIMPLE IRAs allow employee deferrals up to $13,000 and require employers to match 1% – 3% of compensation. 401(k)…
Top 26 Ways to Manage Your 401K Investments From the Pros
A 401k investment is essential if you want to achieve a comfortable and financially stable retirement. There are many different ways to manage your 401k investments to ensure you get the most benefits out of your retirement plan. We spoke with the experts who shared their best tips for managing your 401k plan. Here are…
Free SEP IRA Calculator
How to Read Your SEP IRA Calculator Results Suggested Employer SEP IRA Contribution: Your suggested contribution should be the same as the desired amount that you input unless your desired contribution exceeds 25 percent of income or $55,000. If your income is too low, your desired contribution may be too high. If your suggested contribution…
Keogh Plan: Contribution Limits, Rules & Deadlines
A Keogh plan is a qualified retirement plan that allows self-employed individuals up to $56,000 per year in tax-deductible contributions. Keogh plans have largely been replaced by alternatives, including SEP IRAs and Solo 401(k)s, because tax laws now allow business owners who used to use Keoghs to use other plans instead. ShareBuilder 401k individual 401(k)…
IRS Form 5500 Instructions [+ Free Checklist]
IRS Form 5500 is a form many employers must file annually to provide information on their employer-sponsored retirement plans. 401(k) plan sponsors often use third-party administrators for plan compliance issues including filing Form 5500 while some handle it themselves. It’s important that accurate filings be submitted on time to avoid penalties or plan disqualification. If…
