Ubiquity

Small Business Retirement Planning

It's time to start thinking about your future. Learn about your options when it comes to small business retirement planning.

Find Your Plan

Customizing the right retirement plan for your small business takes just a few clicks.

How many employees do you have?

Just me and/or my business partner/spouse

Providing a workplace retirement plan is one of the most effective ways business owners can help themselves and their staff save for the future.

Employers and employees alike can use their 401(k) as a reliable wealth-building tool. Whatever your vision of retirement looks like, strategic planning for your retirement is an opportunity every individual should build a solid foundation upon–not just the wealthy. Whatever stage you or your employees have achieved in business, regardless of the company’s size or age- it is never too early (or too late) to start planning. Ubiquity can design a plan that fits your needs and budget .

Get Started

Is It Time For Your Small Business To Create A Retirement Plan?

Small businesses of all sizes and ages have compelling reasons to consider creating retirement plans:

Bigger Returns

Pre-tax contributions lower your taxable income, making it easier to invest more. In addition, the tax-deferred growth model means your money compounds and grows over the holding period as compared to a taxable account. Though you will have to pay taxes on the money when you retire, you will likely qualify for a lower tax bracket, which means that you will only pay taxes on the amount you withdraw.

A Path to Retirement

Too many small business owners have no retirement savings plan for themselves. Many worry that they do not earn enough profit to save for the future or that they need all the income they generate to grow their business. Some entrepreneurs are simply planning to work until they die, seeing no desire or need to save for future retirement.

These ideas are noble and common among small business owners.  However, they are just not realistic. You may love your work today, but too many variables are beyond your control. What if you get sick? What if your spouse becomes sick and you must become a caretaker? What if your business model becomes outdated or you change and one day actually want to retire? You better have a plan.

Sure we’ve all heard that work can keep our minds sharp and give us a sense of purpose heading into old age, but at least one analysis found that seven years of retirement can reduce your chance of getting a serious condition such as heart disease or diabetes by 20 percent. Remember, choosing not to retire is much different than not having the option if circumstances demanded it.

A Valuable Incentive

Retirement benefits can help attract top talent, retain engaged employees, and help your company thrive. By offering this highly valuable incentive, your enterprise stands to gain the top talent that you might otherwise lose to your competitors. The 401(k) is second only to healthcare in terms of perceived value. In fact, the vast majority of workers would rather have access to a retirement benefit than a pay raise. According to the Employee Benefit Research Institute, more than half of U.S. workers say they are satisfied with their current job largely due mainly in part to its benefits package. Happy employees mean productive employees, and nothing is more beneficial to any business’ bottom line than positive productivity!

Types of Small Business Retirement Plans

Modern enterprises have a wide selection of retirement plans to choose from, including these top choices tailored to small businesses:

SEP Plan

  • SEP stands for Simplified Employee Pension.
  • This IRA-based plan is funded solely by employer contributions.
  • The employer may decide from year-to-year whether to make contributions and how much to contribute.
  • Contributions are deposited directly into an eligible employee’s traditional IRA.
  • SEP plans are suitable for both self-employed business owners and employers with employees.

SIMPLE IRA Plan

  • SIMPLE stands for Savings Incentive Match Plan for Employees of Small Employers.
  • Like SEP, SIMPLE is another IRA-based plan.
  • Employers only qualify for SIMPLE IRAs if they have 100 or fewer employees.
  • Compared to 401(k) plans, they are less expensive and less complicated (with no testing required.)
  • However, the contribution limits are $6,000 less compared to a 401(k).
  • Employers are required to make matching or nonelective contributions for all eligible employees.
  • SIMPLE IRA plans are not recommended for self-employed individuals with no employees.

Solo 401(k) Plan

  • The primary benefit of a solo 401(k) is that it reduces taxable income and allows pre-tax salary contributions.
  • Not only do you enjoy pre-tax growth on investments, but you can also make after-tax Roth contributions.
  • Employers enjoy an additional business tax deduction for plan contributions and expenses.
  • If necessary, you have the option to borrow a loan from your retirement savings
  • Solo 401(k)s boast higher contributions limits than Individual Retirement Accounts (IRAs).
  • Because there are no employees, plan administration is extremely low maintenance.
  • There are no nondiscrimination testing requirements.
  • Business owners are not required to file annual IRS reports under $250,000 in assets.

Small Business 401(k) Plan

  • Small business 401(k) plans allow higher contributions limits than SEP or SIMPLE IRA plans.
  • You have the option to make Roth (after-tax) contributions to maximize your savings.
  • You have the opportunity to take out a loan from your retirement savings if necessary.
  • Typically, you’ll find a broader range of investment options when investing for your small business.

Why Choose Ubiquity for Small Business Retirement Planning?

With a budget-friendly, easy-to-use 401(k) solution from Ubiquity, business owners and employees enjoy substantial benefits, including:

  • Reduced taxable income through pre-tax salary contributions.
  • Greater control over when taxes are paid on retirement assets (pre-tax vs. Roth contributions).
  • Access to options from a broad range of investments.
  • Tax-deferred growth on investments while in the 401(k) plan.
  • Increase in net worth, with the option to take a loan out of retirement savings.
  • Liquidity with the ability to move assets to another retirement plan upon a change in jobs or retirement.
  • Improved morale and productivity, with fewer employees working past their desired retirement date.

Ubiquity makes small business retirement planning a breeze with personalized, hands-on support, without all the overhead. Our affordable small business 401(k) plans have featured flat-fee, transparent pricing from the very beginning. For more than two decades, we’ve served small businesses like yours. Contact us to find out why we’ve been featured in the NY Times, MSNBC, CNBC, Employee Benefit Adviser Magazine, Yahoo! Finance, and others.

Let's build a retirement plan for your small business.
Connect with a retirement expert

© 2020 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

Facebook Twitter LinkedIn YouTube

© 2020 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

Credit Card Logos