So You Want to Start a Retirement Plan?
Retirement Services & Financial Advisors - Serving Columbus & Beyond
Starting a retirement plan can be a highly rewarding experience for you and your employees. For your top earners, it's an opportunity to contribute the maximum tax deferred amount allowed by the IRS. For 2017, that's $18,000 for someone under age 50 during the plan year, or up to $24,000 for those that turn age 50 during the plan year.
If you plan on making more generous employer contributions as well (Profit Sharing and a Match), that allows for a maximum of $53,000 in both employee and employer contributions*, which also allows for you and your employee over age 50, an additional catch-up contribution of $6,000.
As you can see below different scenarios can help you determine the best course of action.
While these maximum amounts can be great for those that can afford it, for most employers it's an opportunity to start preparing themselves and their employees for retirement. Contact us today to start your company's 401(k), or Solo 401(k) if you are an individual business owner and let us help you start preparing for your retirement.
*Additional limits, such as 25% of overall employees' compensation, can reduce the maximum employer contribution.