Retirement Planning

You work hard day in and day out to establish and grow a highly-successful and profitable business. And strategically using retirement planning can be the key that unlocks a new door to success.

The experts at MB Group offer years of experience partnering with financial planners to develop tax-advantaged retirement strategies for small businesses and high net worth individuals. Our team of CPAs and accounting professionals will do the heavy lifting, so you can focus on achieving the next plateau of success. Continue reading to learn more about the benefits and different types of small business retirement services.

small business retirement planning

Retirement Planning Benefits

Small business retirement planning can create a win-win scenario for your employees and your business. While every business scenario can vary, you’ll typically enjoy the following benefits of retirement planning:  

  • Enjoy a tax benefit: The costs of starting a company retirement plan may be fully tax-deductible. All contributions you make to your employee’s retirement account can be tax deductible as well. This is something to highly consider during tax planning.
  • Shelter your income: Because you are an employee of your company, contributions you make to your own retirement plan may be tax-deductible, which can allow you to shelter more of your income.
  • Pass tax savings onto employees: If your retirement plan allows your employees to make contributions to their account, they will do so with pre-tax dollars, which reduces net taxes at the end of the year. 
  • Gain a recruiting and retention edge. Ensure your business can recruit and retain top talent by offering a competitive retirement plan solution.

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Retirement Planning Strategies

The benefits your business realize will depend on the type of retirement plan you establish for your company. The experts at MB Group will work closely with you and your financial planner to explain all of your options while weighing the pros and cons of each type. Let’s take a closer look at the different types of retirement plans:

The Simplified Employee Pension (SEP) Individual Retirement Account (IRA) is a simple but valuable way for small business owners looking to offer a retirement benefit. Through this plan, you can make tax-deferred retirement contributions on behalf of each employee. Because this plan does have relatively low contribution limits, it can be excellent for sole proprietorships and partnerships.

A Safe Harbor 401(k) plan is a type of 401(k) with certain built-in elements — like a guaranteed employer match — that makes the plan exempt from nondiscrimination testing. Nondiscrimination testing is one of the biggest hurdles for business owners looking to offer a traditional 401(k) plan.

Defined benefit plans or pension plans are when employers sponsor the retirement plan for the employee. The benefits are computed using a formula that implements several factors, such as salary history and employment. The benefits in a defined benefit pension are unique in the employee and employer know the formula for calculating benefits and are used to set and define the benefit paid out.

Contrary to the name, split-dollar is less of a type of insurance and more of a contract. In this plan, you and an employee will create a written agreement that highlights how the parties will share the costs, death benefit, and cash value of a permanent life insurance policy.

Why Consult a CPA Firm for Retirement Planning

As a business owner, you are entirely responsible for your own retirement planning. At the same time, you may feel responsible for helping your employees plan and prepare for their own retirement future. 

Fortunately, the experts at MB Group can help guide you to the best retirement plan services based on your personal goals, business needs, and employee base. If you’ve been considering a retirement plan for your business, the experts at MB Group can help. Contact us today to learn how you can develop tax-advantaged retirement strategies.

LET’S CHAT

When it comes to tax planning and preparation, the accounting professionals at the MB Group are your one-stop solution.

We offer a full suite of solutions designed to relieve you of your tax preparation and planning burden, so you can focus on growing your business. 

Contact MB Group today for tax preparation and planning services.

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