Retirement Planning—Options for Women Business Owners
You’re an entrepreneur and you’re not looking back. You’ve opened your own business, whether alone or with other partners, and you’ve found some success. You’ve hired employees, or not, depending on your business and now you’re thinking about retirement, not just for you, but also for any employees you may have. Many employers find that one way to attract and keep good employees, especially executives with critical skills, is to offer competitive retirement plan packages along with a buffet of other benefits. Yet, employee-sponsored retirement plans are often unavailable to employees working in small private companies and can lead to poor employee retention. What business owners need to know is that sponsoring a retirement plan, not just for their employees but also for themselves, is really quite easy. Perhaps you think you must fund employee retirement plans and that plan sponsoring requires lots of complicated paperwork. Or maybe you’re perplexed about compensating top executives without pushing them into an even higher income tax bracket. But don’t fear. Help, and advice, from starting and managing retirement plans to planning for the day you retire, is here. Qualified Plans: Something for Everyone A multitude of retirement plan options are available as benefits packages or customized products to suit your company’s needs. Currently available qualified retirement plans include defined benefit plans, 401(k)s, Savings Incentive Match Plans for Employees (SIMPLEs), Simplified Employee Pensions (SEPs), profit-sharing plans, and money purchase plans. The Employee Retirement Income Security Act (ERISA, amended in 1974) governs most private pension and benefit plans. ERISA has a special focus on making sure that qualified retirement plans do not discriminate in favor of highly paid employees.