Remember Retiring Like a Boss? Your 2024 Guide is Here!

A Quick Retirement Planning Guide

Saving for retirement is essential for everyone, including small business owners and self-employed individuals. The IRS offers several retirement plan options with tax advantages that can help you and your employees build a secure financial future. This guide will provide an overview of these retirement plans for 2024 and help you determine the best option for your business.

Plan Options for Your Business:

1. SEP-IRA (Simplified Employee Pension):

  • Ideal for: Small businesses and self-employed individuals with up to 100 employees.
  • Features: Employer-funded, with flexible 2024 contribution limits ($23,000 for employees, plus a $7,500 catch-up for those 50+), contributions are tax-deductible for employers, easy to set up and maintain, with low administrative costs. Employees are immediately 100% vested in their accounts.
  • Considerations: No employee contributions allowed, employer contributions must be equal for all eligible employees based on a percentage of their compensation.

2. SIMPLE IRA Plans (Savings Incentive Match Plan for Employees):

  • Ideal for: Small businesses with 100 or fewer employees.
  • Features: Both employers and employees can contribute. Employers must choose between matching contributions or making non-elective contributions. 2024 contribution limits are $16,000 for employees, plus a $3,500 catch-up for those 50+.
  • Considerations: Simpler administration compared to 401(k) plans, limited investment options compared to other plans.

3. SIMPLE 401(k) Plans:

  • Ideal for: Small businesses with 100 or fewer employees.
  • Features: Similar to SIMPLE IRA plans but with 401(k) features like loans and hardship withdrawals. Both employer and employee contributions are allowed. 2023 contribution limits are the same as SIMPLE IRA plans.
  • Considerations: Slightly more complex administration than SIMPLE IRA, lower contribution limits than traditional 401(k)s.

4. Individual 401(k) Plan (Solo 401(k)):

  • Ideal for: Self-employed individuals and owner-only businesses.
  • Features: Highest contribution limits ($69,000 in 2024, plus a $7,500 catch-up for those 50+), allows both employer and employee contributions (owner and spouse in owner-only businesses), offers loans and hardship withdrawals.
  • Considerations: Most complex administration compared to other options, higher administrative costs.

Choosing the Right Plan:

Carefully consider the following factors when making your decision:

  • Number of employees: Some plans have employee count limitations.
  • Desired contribution levels: Different plans offer varying contribution limits for both employers and employees.
  • Administrative complexity: Some plans require more administrative effort than others.
  • Investment options: Consider the range of investment options offered by each plan.
  • Professional guidance: Seek advice from a financial advisor to ensure compliance and choose the most suitable plan for your specific needs.

Remember: Offering an appropriate retirement plan not only benefits your employees but also provides tax advantages for your business. Don’t wait any longer – start planning for a secure and comfortable retirement today!

R. Kenner French, is a small business contributor at, author of three books, an executive at both AI involved companies and, a keynote speaker, and a Dave Matthews Band fan!

Kenner French

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...of ABC's Shark Tank says in this video that Kenner is using AI "in an innovative way to help (entrepreneurs) save on taxes." Kenner has saved hundreds (if not thousands) of entrepreneurs IRS/tax dollars, increase wealth, and protect their financial legacy. His strategy can work for you as it has so many entrepreneurs across the globe!
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