If you’re a small business owner or even a sole proprietor, planning for retirement as early as possible is a smart financial decision. Retirement plans can also help you attract and maintain good employees. IRAs let you set aside tax deferred money for retirement and a self-directed IRA allows you to have more control over where that money is invested. They are a common option for sole proprietors, although some plans do allow employees to contribute through a payroll deduction.
- Simplified Employee Pension plans (SEP IRAs) may provide an easy, low-cost plan option if you are self-employed or a partner/owner of a corporation. These plans are easy to set up and operate and a Mountain West self-directed SEP IRA does not have the start-up and operating costs of a conventional employer plan. If you choose to contribute to a SEP IRA, you may select the percentage of contribution for any given year (0 – 25% of earned income) for both yourself and your staff. The only requirement is that the contribution percentage for a given year must be the same for each employee.
- A Savings Incentive Match Plan for Employees (SIMPLE IRA) is designed for small businesses with less than 100 employees. It provides employers with an easy way to make contributions toward the retirement of their employees and themselves. If you are looking for a plan with low start-up and administrative costs to attract and retain employees this may be the plan for you.
- Individual 401(k) Plans provide yet another option for small business owners. Business owners operating as a sole proprietor with no employees other than their spouse, partner(s), and their spouses can qualify for an Individual 401(k) plan. A Mountain West self-directed Individual 401(k) Plan offers the opportunity to purchase leveraged real estate in your plan as well as other alternative investments.
Traditional approaches to retirement investing lead many otherwise savvy investors to overlook one of the most lucrative wealth-building strategies available – self-directed tax-free and tax-deferred investing in alternative assets. Investors in the know have learned, and you can too, that under your direction, your self-directed retirement plan can invest in real estate, notes, limited partnerships, and many other assets.
With the great tax advantages provided by a self-directed IRA or 401(k), as well as the wider range of possible investments, you can potentially build wealth and secure your future much more effectively that you can through traditional plans. Contact Mountain West IRA today to begin planning your ultimate road to retirement.