b'Financial Focus Which Retirement Plan IsRight for Your Business? I f youre a business owner, youve got a lot on yourlimited to $13,500, or $16,500 if youre 50 or older. You mindcash flow, competition, marketing, and so on.must match contributions made by your employees or However, you may also want to think about tomorrow make contributions to all eligible employees. The amounts if you dont already have one, you might want to considerdiffer, depending on which contribution method you electa SEP IRA. You must cover yourself and all eligible establishing a retirement plan.as the employer. employees, but contributions are discretionary and can vary from year to year. This can be an expensive plan for Beyond helping you and your employees build assets, aSAFE HARBOR 401(K) A Safe Harbor 401(k) planyour business because the contribution percentage you retirement plan is a good way to attract those employeesallows you to defer the annual maximum of $19,500 forselect applies to all eligible employees. Contribution limits in the first placeand to keep them.yourself (or $26,000 if youre 50 or older). You must matchare the same as those of a 401(k) plan.employee contributions up to certain limits. You also can Several states now require business owners without theirreward yourself and your employees with profit-sharingContributions to all these plans are tax deductible, and own plans to offer one and charge significant fines to thosecontributions up to the individual maximum of $58,000,tax credits for establishing them are available. The plans who refuse to comply. Some other states are consideringor $64,500 for those 50 or older. This type of plan comeslisted above are some of the most common, but you may requiring such plans. If your state offers one now, or willwith administrative obligations and costs. A third-partywant to explore other plan types that may be beneficial in the future, look at all the plans featurescontributionadministrator (TPA) can assist you with meeting theseto your business. Consult with your tax advisor and limits, potential tax credits, overall cost, and number andobligations and will charge a separate fee.financial professional, or a third-party administrator with type of investment optionsto determine if this planretirement plan expertise, to determine which retirement makes sense for your needs, or if youd be better off withOWNER-ONLY 401(K) This plan, sometimes called aplan is right for your business. one of your own choosing, such as the following: Solo 401(k) or Individual 401(k), is similar in terms of contribution limits to the Safe Harbor 401(k). The featuresOnce in place, your retirement plan can help brighten SIMPLE IRA A SIMPLE IRA, as its name suggests, is easyof an Owner-only 401(k) plan are designed for self- your financial future and that of your employees. Consider to set up and maintain, and it can be a good plan if youremployed individuals and business owners with no eligibletaking action soon. business has fewer than 10 employees. However, a SIMPLEemployees other than themselves and their spouses. IRA can be less generous to you as a business owner inThis article was written by Edward Jones for use by your terms of allowable contributions, compared to a 401(k)SEP IRA If you have just a few employees or are self- local Edward Jones Financial Advisor. Edward Jones, or SEP. For 2021, your annual contributions are generallyemployed with no employees, you may want to considerMember SIPC.Not all businessretirement plansare equal.Sam Buchert edwardjones.comFinancial Advisor Member SIPC581 W Wickenburg Way Suite AWickenburg, AZ 85390928-684-707216 March 2021'