Small Business Resources point to several retirement-savings options.

They are often referred to as ‘independent contractors’ or workers, as they’ve chosen to seek something better in life by  starting their own business: either by necessity, or following their dream idea for a product or service.th94GEKJAC

Certainly, what characterizes this group is their independence as they set their own hours, and maybe their own office place de jour—a coffee shop, library or a small office in their home.

At some juncture, though, they must start finding ways to save for retirement, seeking Small Business Resources along the way.

Unwittingly, and as they find ways to reduce their taxes through business deductions, many owners end up paying less into their Social Security. This can reduce that all-important fixed income stream in retirement.

Without the traditional retirement options available to them, they still have solid options to choose from.

Simplified Employee Pension IRA

Operating as a sole propietor, or moonlight while holding down a permanent job, business owners can still set up a SEP IRA.

In fact, the tax code allows a contribution of up to 25% of net earnings from self-employment…each year: $52,000 maximum for 2014.

The earnings grow tax-deferred, but will penalize withdrawals (10%) if the funds are taken out before a determined age.

Savings Incentive Match Plan for Employees IRA

Called a SIMPLE IRA, this retirement option is attractive as a hiring tool because employee contributions are matched by the business owner—the ‘M’ stands for match.

Typically, such plans call for a 2% fixed, or 3% match of those employee contributions.

Other options…

It may sound a bit too promotional, but some banks allow your debit card purchases to accumulate money for transferring to a savings account. This may be ideal solution for a startup owner in the early months, or years.

Banks offering this program include Bank of America, Wells Fargo. Also, a company called ACORN GROWS will transfer money to retirement funds managed by Vanguard or Pimco, for example.

If your business is in an expansion mode, or you’re looking for a new position, contact us today. Discover the many opportunities listed on our portal; it’s one of the most extensive in the industry.


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