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.
This flowchart addresses some of the most common issues that arise when looking to set up a retirement plan for a business. It 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 save more than the annual total contribution limit
- Maximum employee contribution amounts for plans
- Which plans have mandatory matching contribution requirements
- Minimum employer matching contribution amounts
- Plans that offer more flexibility
