Choosing the Right Retirement Plan for Your Business

Offering a retirement plan is one of the smartest moves a business can make—both to support employees’ financial futures and to take advantage of tax benefits. But with so many options available, how do you choose the right retirement plan consulting firms​ for your business?

The decision comes down to your company’s size, goals, and how involved you want to be in administration and compliance.

1. Assess Your Business Needs

Start by asking:

• How many employees do you have?

• Are you looking for a simple plan or one with higher contribution limits?

• Do you want to offer employee contributions, employer contributions, or both?

• What’s your budget for setup and administration?

Clarifying these answers helps narrow down your options.

2. Compare Plan Types

Here are a few common retirement plan options for businesses:

• SEP IRA: Easy to set up and maintain. Funded only by employer contributions (up to 25% of compensation or $69,000 in 2024). Ideal for self-employed individuals or businesses with fluctuating profits.

• SIMPLE IRA: Designed for businesses with 100 or fewer employees. Allows both employer and employee contributions. Requires either a 2% fixed contribution or a 3% match. Easy to administer with minimal reporting requirements.

• 401(k) Plans (Traditional or Safe Harbor): Higher contribution limits—up to $23,000 in 2024, plus $7,500 in catch-up contributions. Offers more customization but comes with additional administrative and compliance responsibilities. Safe Harbor plans help satisfy nondiscrimination testing with set employer contributions.

3. Think About Growth and Retention

A well-structured retirement plan is more than just a benefit—it’s a powerful recruiting and retention tool. If you plan to grow your business, offering a competitive plan like a 401(k) can help you attract top talent while maximizing tax-deferred savings for owners and key employees.

4. Get Professional Guidance

Consulting with a retirement plan advisor can save time, ensure compliance, and help you design a plan that fits your business goals. They can also assist with plan benchmarking, fee analysis, and employee education.

Take the next step—call (973) 422-9140 or visit our website for a retirement planning session.