{"id":4055,"date":"2023-07-12T02:40:04","date_gmt":"2023-07-12T02:40:04","guid":{"rendered":"https:\/\/www.ua-cpas.com\/blog\/?p=4055"},"modified":"2023-07-12T02:40:04","modified_gmt":"2023-07-12T02:40:04","slug":"retirement-plans-one-size-doesnt-fit-all","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2023\/07\/12\/retirement-plans-one-size-doesnt-fit-all\/","title":{"rendered":"Retirement Plans \u2013 One Size Doesn\u2019t Fit All"},"content":{"rendered":"

\"\"Retirement plans offer significant tax advantages to small business owners. Here is an overview of several types of plans available to small businesses, their features and restrictions.\u00a0<\/strong><\/p>\n

SEP- Simplified Employee Pension Plan<\/strong><\/span>– Contributions are made by the employer only, up to the lesser of 25% of employee\u2019s compensation or $66,000 for 2023. Employees are immediately 100% vested. No loans are permitted. Withdrawals permitted anytime. Primary advantage is how simple a SEP is to administer. No need for annual IRS filing. Required Minimum Distributions (RMDs) must be withdrawn by April 1 of the year you reach age 73.<\/p>\n

SIMPLE IRA Plans<\/strong><\/span>– Employees may defer income and make salary contributions. For 2023, employees may contribute up to $15,500, $19,000 if age 50 or older. If employee contributes, employers must match employee\u2019s contribution up to 3% of his compensation. If employee doesn\u2019t contribute, employers must make a contribution of 2% of employee\u2019s compensation. Employees are immediately 100% vested in employer\u2019s contribution. Loans are not permitted. Withdrawals permitted anytime. No need for annual IRS filing. RMDs must be withdrawn by April 1 of the year you reach age 73.\u00a0<\/strong><\/p>\n

401(k) Plans<\/strong><\/span>– Employees may make elective deferrals up to $22,500 in 2023, $30,000 if age 50 or older. Employer may make contributions to employee\u2019s accounts. Total employer and employee contributions are limited to lesser of 100% of employee\u2019s compensation or $66,000 in 2023, $73,500 if age 50 or older. Employees vest per plan terms. Loans may be allowed. Withdrawals may be permitted for hardships. Annual IRS filings are required. RMDs must be withdrawn by April 1 of the year you reach age 73. In contrast to a SEP or SIMPLE IRA, if you are still working, you may wait until retirement to withdraw RMDs.\u00a0\u00a0<\/strong><\/p>\n

No one plan fits all.<\/strong><\/span> Owners need to weigh many factors. Companies with high employee turnover may not want immediate vesting. How simple is the plan to administer? Do you want the employees to contribute to the plan? Do you want to enable loans? Do employees want ability to make withdrawals?\u00a0<\/strong><\/p>\n

Which plan is suitable for your firm?<\/strong> <\/span>Contact your tax advisor at Urbach & Avraham, CPAs. We can review your company\u2019s goals to evaluate which plan best meets your needs.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Retirement plans offer significant tax advantages to small business owners. Here is an overview of several types of plans available to small businesses, their features and restrictions.\u00a0 SEP- Simplified Employee Pension Plan– Contributions are made by the employer only, up to the lesser of 25% of employee\u2019s compensation or $66,000 for 2023. Employees are immediately […]<\/p>\n","protected":false},"author":3,"featured_media":4060,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,23],"tags":[265],"class_list":{"0":"post-4055","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-small-business-forum","8":"category-taxes","9":"tag-retirement-plan-options","10":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=4055"}],"version-history":[{"count":3,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4055\/revisions"}],"predecessor-version":[{"id":4061,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4055\/revisions\/4061"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/4060"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=4055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=4055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=4055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}