Jump-starting retirement plans for small businesses – The Mercury

If you are among the nation’s more than 31 million small businesses owners (U.S. Small Business Administration, “2020 Small Business Profile.”), you likely spend much of your time juggling day-to-day activities of your business. While handling the here-and-now, it can be easy to put off planning for the future.

If retirement planning has fallen on your back burner, it’s time to bring it to your forefront. As a small business owner, you deal with a different world of retirement plans than somebody who is employed in a more conventional manner — making it all the more important to closely explore your options when deciding what’s right for you.

Self-employed individuals or business owners should be sure to fund IRAs as much as possible. In 2021, the annual limit for 2021 is $6,000 ($7,000 for those ages 50 and up). Funding IRAs is only a starting point. Here are a few other options for business owners to consider:

Solo 401(k)s

This offshoot…

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