Employee Retirement Plans
If you're thinking of setting up a retirement plan for your employees, please read on...
October 1st is the deadline for setting up a SIMPLE IRA account for the 2021 tax year. This type of plan is easier to set up and run than a 401k. Annual contribution limits are lower (13,500) but that's the tradeoff verses higher limits of the 401k. (19500)
Big advantage of SIMPLE IRA v 401k is there are far fewer anti-discrimination and top heavy requirements. In short, this means that in a SIMPLE IRA, the owners can contribute more of what they want, without as many restrictions based on their employees' contributions.
You can see the attached pdf for some details of either plan. (right hand column is 401k)
Thanks to Bryce Mantell of ADP Retirement Services for sending the pdf to me.
If you have questions or need a referral to a retirement specialist, please let me know.