FINANCIAL FOCUS
Retirement planning for your SMALL BUSINESS
C
hances are, when you started your small business, retirement wasn’t the first thing on your mind. Even so, the future is growing nearer every day, and there are good reasons to move retirement planning to a high priority, both for yourself, as a business owner, and for your employees, as valued members of your team. For starters, you will help your employees—if you have them—prepare financially for their own future. Offering a retirement plan could help you attract and retain employees who are important to the success of your business. Of course, a retirement plan makes it possible for you to work toward your own goals for the future as well. And there’s an additional incentive to look into small business retirement plans: they offer potential tax savings to your business. 22 | Mv | September + October 2021
PLAN OPTIONS
Among retirement plans appropriate for small businesses are four that are especially popular with business owners these days. A SEP-IRA (Simplified Employee Pension Plan) is for self-employed individuals or small businesses. Contributions are made only by you for yourself and your employees, and are generally tax deductible as a business expense. A SIMPLE IRA (Savings Incentive Match Plan for Employees) is for any business with 100 or fewer employees.
By Robert May Assistant Vice President Frost Commercial Banking
