Do you own a small business or are you self-employed?
If so, have you considered sponsoring a retirement plan?
Now is a good time to start one.
Thanks to the SECURE 2.0 legislation, you can receive tax credits for opening and administering a 401(k), SEP-IRA, or SIMPLE IRA.
And all these plans offer tax benefits and access to many investments.
A 401(k) might be a more efficient plan for businesses with several employees.
But even if it’s just you, and possibly your spouse, you could open what’s known as a Solo 401(k).
And a 401(k) has high contribution limits, so you can put away substantial amounts for your retirement.
A SEP-IRA also has high contribution limits, but it might be more suitable if you’re self-employed or have few or no employees.
That’s because you must contribute the same percentage as your own compensation to every eligible employee.
Finally, a SIMPLE IRA is easy to set up and administer.
However, the contribution limits are much lower than those of a 401(k) or SEP-IRA.
Check with your tax advisor to determine which plan is right for your needs – and the sooner you get started, the better.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
