Launching a retirement plan is not as tough as people assume it to be. Besides, there are various retirement plans that offer tax benefits to both employees and employers. Some guys even invest online for their retirement period. Nevertheless here are some retirement plans that you can go for.
Payroll-Deduction IRA
If a company doesn’t want to go for retirement plans, still it can allow its workers to donate to IRA using payroll deductions, offering a straight and simple method for qualified workers to save.
SARSEP (Salary Reduction Simplified Employee Pension)
A SEP setup before 1997, a SARSEP is that which comprises of a salary cutback deal. As this plan is a basic one, the managerial expenses should be lesser than what would be for more intricate plans. Here, as an alternative to setting up a new retirement plan, companies contribute to IRAs of workers and their own IRA, subject to some percentages of dollar limits and pay.
SEP (Simplified Employee Pension)
Simplified Employee Pensions offers a simplified way for workers to contribute for a retirement plan. Instead of setting up a money purchase or profit sharing plan with a trust, companies can use a SEP agreement & contribute straight to a personal retirement account or a personal retirement annuity set up for every entitled worker.
Simple IRA Plan
These are Tax favored plans that some small companies can arrange for their workers, a Simple IRA plan is a written salary decrease accord between worker and company that permits the worker, if qualified, to decide on having the company to pay salary reductions to a SIMPLE IRA on behalf of the workers.
401(k) Plan
SARSEP (Salary Reduction Simplified Employee Pension)
A SEP setup before 1997, a SARSEP is that which comprises of a salary cutback deal. As this plan is a basic one, the managerial expenses should be lesser than what would be for more intricate plans. Here, as an alternative to setting up a new retirement plan, companies contribute to IRAs of workers and their own IRA, subject to some percentages of dollar limits and pay.
SEP (Simplified Employee Pension)
Simplified Employee Pensions offers a simplified way for workers to contribute for a retirement plan. Instead of setting up a money purchase or profit sharing plan with a trust, companies can use a SEP agreement & contribute straight to a personal retirement account or a personal retirement annuity set up for every entitled worker.
Simple IRA Plan
These are Tax favored plans that some small companies can arrange for their workers, a Simple IRA plan is a written salary decrease accord between worker and company that permits the worker, if qualified, to decide on having the company to pay salary reductions to a SIMPLE IRA on behalf of the workers.
401(k) Plan
This is a type of defined contribution plan, which allows worker salary deferrals and/or company contributions.
Simple 401(k) Plan
Simple 401(k) Plan
This one is a type of defined contribution plan for small business owners having 100 or lesser workers. In this plan, a worker can elect to put off some of the compensation. Contrasting to a standard 401(k) plan, here the company must either make: (1) a corresponding payment up to 3% of every worker’s salary, or (2) a 2% non elective contribution of every eligible worker's salary.
If you have a bad credit mortgage, you should consider that as well and adjust your retirement plans accordingly.
403(b) Tax Sheltered Annuity Plan
This is an annuity plan for certain colleges, public schools, universities, public hospitals, churches, and charitable bodies that are exempt from tax under the IRC section 501(c)(3).
Defined Benefit Plan
This is an annuity plan for certain colleges, public schools, universities, public hospitals, churches, and charitable bodies that are exempt from tax under the IRC section 501(c)(3).
Defined Benefit Plan
This is a type that is financed primarily by the company and whose expense is verified actuarially.
Money Purchase Plan
Money Purchase Plan
This one is a type of defined contribution plan in which employer contributions are fixed.
Profit Sharing Plan
Profit Sharing Plan
This is a defined contribution plan that permits optional yearly company contributions.
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2 comments:
There are number of retirement options and in most cases it is up to the employer to choose the best for their employees. Almost all the retirement options like the SIMPLE IRA have tax benefits.
Thanks for the great info there George. I'll look into that later.
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