As an employer, you may face the challenge of balancing your business’s needs with your individual retirement planning needs. Figuring out the best way to prepare for a fulfilling retirement requires thoughtful planning and consideration of your needs as an individual and as an employer. You also may have employees whose needs you want to consider. Merrill retirement plans can help you find a solution that is appropriate for your business needs, including:
Save money with tax advantages
- Fit your budget with competitive pricing
- Get greater control with more options
- Accomplish more with available specialists
Learn more about the following Merrill self-directed retirement plan options to benefit you and your business:
401(k) plans are a popular choice among established employers who want to recruit, retain and reward employees. The traditional 401(k) plan has many features and effectively combines employer contributions (25% of eligible compensation (up to $330,000 in 2023)) with employee salary-deferral contributions (up to $22,500 in 2023; $30,000 if age 50 or older).
An individual 401(k) offers owner-only businesses the same benefits as a traditional 401(k) without any complex testing or detailed administrative responsibilities. You may be able to make higher contributions than in other types of retirement plans with the ability to make salary-deferral contributions of up to $22,500. The 2023 deductible contribution amount is 25% of compensation, not to exceed $66,000. Individuals age 50 or older can make an additional $7,500 catch-up contribution in 2023 for a total of $73,500.
A simplified employee pension (SEP) plan is appropriate for both entrepreneurs and business owners with employees. Inexpensive and easy to establish and maintain, a SEP plan allows high employer contributions (25% of compensation or 20% of net earnings from self employment, up to $66,000 for 2023). Annual employer contributions are optional, giving you the ability to determine each year whether to contribute. Employer contributions are 100% vested immediately.
A savings incentive match plan for employees (SIMPLE) may be a good choice for employers with 100 or fewer employees who can afford to make mandatory annual contributions in exchange for no top-heavy or compliance testing requirements. Employees can defer compensation up to $15,500 ($17,500 if they are age 50 or older) for 2023. Employer contributions are 100% vested immediately.