Focus on business today with an eye to the future
If you are self-employed or own your own business, retirement planning is an important part of your business plan, allowing you to strategize for your future as well the future of your employees. The Northfield Investment Services team will help you professionally manage your retirement benefits and determine the best retirement options for your company.
Some of the retirement plan options we review and consider include:
SEP (Simplified Employee Pension Plan) IRA
A SEP-IRA allows employers and self-employed individuals to establish a simple, business retirement plan. The plan is flexible and allows you to make deductible contributions directly to a traditional IRA for all qualified employees. As the employer, you may choose whether or not to make contributions from year to year.
SIMPLE-IRA (Savings Incentive Match Plans for Employees)
A SIMPLE-IRA is for companies with fewer than 100 employees that do not have another qualified retirement plan and are looking for a plan that is flexible and partially funded by employees. Employer contributions are not currently taxable to the employee and earnings accumulate, tax deferred.
If you own a family business and you employ only immediate family members—your spouse, parents, grandparents, children, and/or grandchildren—this plan is a great option for you. Similar to a standard 401(k) plan, the Solo 401(k) offers sole proprietors the opportunity to defer a larger sum of money.
A 401(k) is a salary deferral plan for employers. Employer contributions to the plan are tax deductible to the business and the plan may provide a voluntary employer-matching fund. The employer may make discretionary contributions any year, as long as allocation is nondiscriminatory.
A Profit-Sharing Plan allows employers to control their company's plan. They have the option to make a discretionary contribution on behalf of eligible employees and can choose to vary their contribution from year to year.
Northfield Investment Services does not provide tax advice. Investors should consult their tax preparer regarding their individual situation.