Must meet non-discrimination requirements

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contributions. You can choose to match your employees' contributions dollar-for-dollar on up to 3% of their compensation, or you can contribute up to 2% of your employees' compensation outright—with no contribution requirement on their part.Contribution limits for a SIMPLE IRA are lower than those for a SEP IRA at $15,500 per year (in 2023) with a $3,500 catch-up contribution for those over 50. There are rules about reducing the 3% matching contribution—it can't drop below 1%. And you can't reduce the matching contribution for more than two out.

of five calendar years.401(k) plansThe 401(k) is one of the first accounts that Northeast Mobile Number List comes to mind when many people think of employer-sponsored retirement plans. It, too, comes in traditional (i.e., tax deferred) and Roth varieties. However, it can be costly to establish a 401(k) plan as a small business owner, and some might find this retirement plan difficult to administer, as you're required to und participation requirement Age 21; worked for 3 out of the last 5 years; received at least $750 in compensation in 2022 Earned at least $5,000 during any 2 years before the current year; expected to earn at least $5,000 in the current year Must meet non -discrimination requirements.





unless it's a certain type of plan; set your own rules for employee eligibility Must meet non-discrimination requirements, unless it's a certain type of plan; set your own rules for employee eligibilityAnnual reporting Yes, simplified No Yes YesThe bottom lineSmall business retirement plans can provide a way to prepare for your own future as well as offer a valuable benefit for your workers. On top of that, there's a tax credit that can help offset the cost of establishing a retirement plan for your small business. Additionally, contributions you make to your employees' plans are tax deductible.For a growing small business, your employees are typically your lifeblood. And often, they feel like an extension of your family. So it's in your best interest to keep them incentivized and aligned with your business. But you don't want the