Small Businesses Retirement Plan Options

• For the retirement plan of the employees of an S Corp-type of small business, the typical cost for employers will range from $2,000 to $4,000 annually in administrative and insurance expenses.
• For those plans that need an S Corp employer to have a contribution, the percentage is usually 3-4% per employee.
• The "401(K) small business retirement plan" is for all types of public or private companies with over 20 employees.
• This plan is one of the typical retirement plans that are being offered by companies.
• This plan is more flexible with regard to investment options such as mutual fund investments.
• Employees can have a maximum contribution of $18,500 in defered pay. For 50 years old and older employees, the amount is $24,500.
• The maximum total contribution is $54,000.
• Companies can have the option to contribute the same amount as what their employees are contributing.
• There is also an option to contribute a maximum of 25% of an employee's pay through profit sharing. The maximum total amount for this is $55,000.
• Some companies are offering their services to maximize the contributions of the employers and their employees on their retirement plan benefits.

Benefits of Retirement Plans

• These retirement plans can help secure the future of the companies and their employees.
• Having a retirement plan can make a company more attractive for employees.
• Employers who offer these plans are also eligible for tax deductions.