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Actual for You - Three Easy Pension Plan Options for Small Businesses
Sometimes, people that are not really capable for the job manage to impress on their interview and get employed. After you have spent money and time on that person, you realize you had made a big mistake employing that person. This is a very common issue these days as people appearing for their interviews, use materials and tips from the internet or through some professional, just to make an impression on the employers, even if they are not at all fit for the job. Therefore it is important for employers to learn the art of employing th
One wrinkle about SEP-IRA plans. You generally need to cover all the adult employees of the business who've worked for you for more than three years. SEP-IRA pension plans, therefore, may be most attractive to one employee businesses and to businesses that by their nature don't employ anybody other than the owner for more than a year or two.
Easy Option #3: Go with a Simple-IRA
The global digital animation industry is poised to grow to $70 billion by this year. The Indian animation industry is expected to reach $15 billion by 2008. Big numbers, pointing to India’s next big outsourcing boom. Labor arbitrage numbers are absolutely fantastic: $125/hour in the US versus $25/hour in India for animators. $75 Million to $175 Million for a full-length features film in the US versus $1-$15 Million in India.As in the software industry, much of the growth is driven by off-shoring and contract services. Original p
Easy Option #1: Don't Forget About A Regular Old IRA
Here's the first thing to consider--even though it sounds like a wimp-out: Maybe you shouldn't setup a pension plan all at for your small business. Maybe you should just use an individual retirement account, or IRA, and encourage employees to do the same.
You might even specially budget bonuses for yourself and for employees that get paid at year-end when people may be thinking about tax deductions.
In 2007, an individual can contribute up to $4,000 a year to either a traditional IRA or a Roth-IRA.
That maybe doesn't seem very clever or sophisticated. But a $4,000 a year contribution grows to more than $600,000 (in real, adjusted for inflation value). That's enough to rather easily pay a $25,000 a year retirement benefit. Note that most workers will also get between $10,000 and $20,000 in social security benefits. Which means that an IRA might just be the perfect solution for many people.
Easy Option #2: Consider A SEP-IRA
Here's another easy option--a Simplified Employee Pension IRA, or SEP-IRA.
You can setup a SEP-IRA (both the plan and the worker savings accounts) by filing a bit of paperwork with an investment company like the Vanguard Group, Charles Schwab, or Fidelity. (Any of these outfits will send you paperwork that explains how to setup your SEP-IRA in, oh, about ten minutes.)
What's neat about a SEP-IRA, as compared to the easy, non-option of just going with a traditional or Roth IRA, is that you can contribute more money. Partners and sole proprietors, for example, can contribute up to 20% of their earnings to a SEP-IRA. Corporations can contribute up to 25% of an employee's annual wage to a SEP-IRA. Note that this contribution can't be more than $44,000.
A sole proprietorship business that makes its owner $50,000 a year, for example, can probably pay roughly $10,000 a year into the owner's SEP-IRA account. Continued over four decades, this annual savings amount grows to roughly $1,500,000 in adjusted-for-inflation dollars. That's a big enough balance to pay you a $62,000 a year retirement benefit.
One wrinkle about SEP-IRA plans. You generally need to cover all the adult employees of the business who've worked for you for more than three years. SEP-IRA pension plans, therefore, may be most attractive to one employee businesses and to businesses that by their nature don't employ anybody other than the owner for more than a year or two.
Easy Option #3: Go with a Simple-IRA
Whether you presently own a retail or web based business and are looking for an additional profit center or you are thinking of starting a business, jewelry is a “no-brainer” choice for a proven product category. The buying public, (particularly women) never tires of jewelry as the choices in color, materials, finishes and styles are endless and innovations are continual. Every generation reinvents jewelry for itself in much the same way that it reinvents music and fashion. Styles change but the basic facts remain the same. If you are
In 2007, an individual can contribute up to $4,000 a year to either a traditional IRA or a Roth-IRA.
That maybe doesn't seem very clever or sophisticated. But a $4,000 a year contribution grows to more than $600,000 (in real, adjusted for inflation value). That's enough to rather easily pay a $25,000 a year retirement benefit. Note that most workers will also get between $10,000 and $20,000 in social security benefits. Which means that an IRA might just be the perfect solution for many people.
Easy Option #2: Consider A SEP-IRA
Here's another easy option--a Simplified Employee Pension IRA, or SEP-IRA.
You can setup a SEP-IRA (both the plan and the worker savings accounts) by filing a bit of paperwork with an investment company like the Vanguard Group, Charles Schwab, or Fidelity. (Any of these outfits will send you paperwork that explains how to setup your SEP-IRA in, oh, about ten minutes.)
What's neat about a SEP-IRA, as compared to the easy, non-option of just going with a traditional or Roth IRA, is that you can contribute more money. Partners and sole proprietors, for example, can contribute up to 20% of their earnings to a SEP-IRA. Corporations can contribute up to 25% of an employee's annual wage to a SEP-IRA. Note that this contribution can't be more than $44,000.
A sole proprietorship business that makes its owner $50,000 a year, for example, can probably pay roughly $10,000 a year into the owner's SEP-IRA account. Continued over four decades, this annual savings amount grows to roughly $1,500,000 in adjusted-for-inflation dollars. That's a big enough balance to pay you a $62,000 a year retirement benefit.
One wrinkle about SEP-IRA plans. You generally need to cover all the adult employees of the business who've worked for you for more than three years. SEP-IRA pension plans, therefore, may be most attractive to one employee businesses and to businesses that by their nature don't employ anybody other than the owner for more than a year or two.
Easy Option #3: Go with a Simple-IRA
Medical billing is a multi-million dollar industry in America today. The exact process a bill goes through varies widely depending on various factors, such as the type of insurance a patient has and the type of service rendered by a provider.The process begins after a patient has a doctor visit, which could include actual treatment for injuries or other medical conditions. Sometimes the visit may simply be a diagnosis of a condition leading to a prescription given by a doctor. After the visit has concluded, a doctor will give de
Easy Option #2: Consider A SEP-IRA
Here's another easy option--a Simplified Employee Pension IRA, or SEP-IRA.
You can setup a SEP-IRA (both the plan and the worker savings accounts) by filing a bit of paperwork with an investment company like the Vanguard Group, Charles Schwab, or Fidelity. (Any of these outfits will send you paperwork that explains how to setup your SEP-IRA in, oh, about ten minutes.)
What's neat about a SEP-IRA, as compared to the easy, non-option of just going with a traditional or Roth IRA, is that you can contribute more money. Partners and sole proprietors, for example, can contribute up to 20% of their earnings to a SEP-IRA. Corporations can contribute up to 25% of an employee's annual wage to a SEP-IRA. Note that this contribution can't be more than $44,000.
A sole proprietorship business that makes its owner $50,000 a year, for example, can probably pay roughly $10,000 a year into the owner's SEP-IRA account. Continued over four decades, this annual savings amount grows to roughly $1,500,000 in adjusted-for-inflation dollars. That's a big enough balance to pay you a $62,000 a year retirement benefit.
One wrinkle about SEP-IRA plans. You generally need to cover all the adult employees of the business who've worked for you for more than three years. SEP-IRA pension plans, therefore, may be most attractive to one employee businesses and to businesses that by their nature don't employ anybody other than the owner for more than a year or two.
Easy Option #3: Go with a Simple-IRA
What will the advertising executives think of next? Many small businesses will try new forms of advertising because the Yellow Pages doesn't work. In fact one of the most interesting new ways to advertise is to buy a space above urinals and it was proven that that works five times better than yellow page ads.And if you have the stomach for it we have been told that advertising on the back of toilet paper and bars and restaurants works great and one industry survey said it works 10 times better than yellow page ads. Yes, adver
A sole proprietorship business that makes its owner $50,000 a year, for example, can probably pay roughly $10,000 a year into the owner's SEP-IRA account. Continued over four decades, this annual savings amount grows to roughly $1,500,000 in adjusted-for-inflation dollars. That's a big enough balance to pay you a $62,000 a year retirement benefit.
One wrinkle about SEP-IRA plans. You generally need to cover all the adult employees of the business who've worked for you for more than three years. SEP-IRA pension plans, therefore, may be most attractive to one employee businesses and to businesses that by their nature don't employ anybody other than the owner for more than a year or two.
Easy Option #3: Go with a Simple-IRA
The busiest month of the year is looming, you’ve three admin projects outstanding and one of your staff has just handed in their notice... You’ll now be working late for weeks! There must be another way?Unlike the US where it is commonplace, few event companies in the UK have ever thought about taking on interns yet they are missing out on a flexible, energetic, and creative work force that wouldn’t hurt their budgets. There are many people searching for event industry work experience or work placements who could provide you
One wrinkle about SEP-IRA plans. You generally need to cover all the adult employees of the business who've worked for you for more than three years. SEP-IRA pension plans, therefore, may be most attractive to one employee businesses and to businesses that by their nature don't employ anybody other than the owner for more than a year or two.
Easy Option #3: Go with a Simple-IRA
If neither a regular IRA or a SEP-IRA seems a good fit, you have one other easy option, a SIMPLE-IRA. A Simple-IRA works like a no frills 401(k) plan. Employees can contribute up to a set amount (typically $10,000) of their pay. Employes typically must match employee contributions 100% up to 3% of the employee wages. This sounds terribly complicated, but let me show you an example of how this works.
Suppose an employee makes $10,000. You would need to match employee contributions, dollar for dollar, up to 3% of the $10,000 in employee wages. This 3% figure equals $300. Accordingly, if the employee saves nothing out of his or her wages, you contribute nothing.
If the employee contributes $200 out of his wages, you also contribute $200. That's a dollar-for-dollar match.
If the employee contributes $400 out of this wages, you only contribute $300. In other words, you do a dollar-for-dollar match--but only up to the $300 mark.
Simple-IRAs present small business owners with a couple of neat benefits. First, you can easily and cheaply set them up. Typically you just file a bit of paperwork with an investment company. (This paperwork needs to be filed typically by October 1 of the year you want to setup the Simple-IRA for.)
A second neat benefit of a Simple-IRA is that you, the owner, can still save quite a bit of money--at least $10,000 a year--but you don't have to make big dollar contributions to all employees pension savings accounts. You only need to do the 3% match for those employees who decide to save some of their money.
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