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The Best Retirement Plans For Small Business Owners

While owning your own small business has many benefits, you may be concerned with saving for retirement. The costs of running your business can add up, but they shouldn’t stop you from saving for retirement. Developing a company retirement plan can help you to prepare for the future.

Read on to explore some retirement plan options for small business owners and employees.

Do Small Business Owners Need A Retirement Savings Plan?

small business owners figuring out retirement plan

As a small business owner, you may be wondering whether you need to set aside money for retirement. If you’re considering cashing out when you retire, you might feel secure with your nest egg.

But what if you don’t make enough money from the company’s sale, or your business fails before you’re ready to sell? What if a health problem forces you to retire early?

For most small business owners, a retirement savings plan is an essential part of being prepared for the future.

Are There Retirement Plans For Small Business Owners?

You’ve likely heard of the Individual Retirement Account (IRA) and the 401(k), which are long-term savings vehicles that offer tax benefits to Americans saving for retirement. There are additional retirement plans available for small business owners and employees, including: 

There are benefits and restrictions to all of these retirement plans. Consult a financial or tax advisor before contributing to an IRA or establishing a retirement plan.

How Much Should You Save For Retirement?

save for retirement early

Just as you plan and spend carefully for your business, also think about your retirement expenses to make sure you’re saving enough. Get a good idea of your own needs by answering these questions:

Many experts suggest saving at least 10% of your annual gross income each year for retirement, but your needs may vary. You can start by analyzing your potential expenses using a free online retirement calculator.

Starting A Retirement Plan Now

Whether you’re a small business owner or employee, there are clear benefits to saving for retirement now. 

Synchrony Bank offers a range of financial products that can help small business owners find the right retirement program. We have several savings account types that can help you meet your retirement goals, including IRAs.

You should consult your financial or tax advisor before contributing to an IRA.

Call Synchrony Bank at 1-844-345-5789 or click here to open an account and start executing a retirement plan today.

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Sources:

IRS: https://www.irs.gov/retirement-plans/plan-sponsor/small-business-retirement-plan-resources

U.S. News: http://money.usnews.com/money/blogs/planning-to-retire/2014/05/13/the-top-10-sources-of-retirement-income

Bankrate.com: http://www.bankrate.com/finance/savings/savings-strategies-for-different-goals-1.aspx


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