Retirement Plans for Small Businesses
Why Offer a Retirement Plan?
Retirement plans aren’t just about the future—they’re also powerful tools for running a successful business today. With the right plan, business owners can reduce taxable income, build personal wealth, and offer employees a benefit that makes your company more competitive. Small employers in Eaton Rapids, Charlotte, and Lansing may also qualify for tax credits that cover startup costs, making it easier than ever to set up a plan.
Comparing Plan Options
Not every business has the same needs, which is why we evaluate different retirement plan structures to find the right fit:
SEP IRAs
Simple to set up, funded by employer contributions. Best for self-employed or businesses with few employees. Contribution limits are high but must be uniform across eligible staff.
401(k) Plans
Higher contribution limits, flexible features like Roth contributions, and potential profit sharing. Solo 401(k) plans allow self-employed owners to contribute as both employer and employee, maximizing savings.
SIMPLE IRAs
Easy for companies with under 100 employees. Both employers and employees contribute. Lower limits than a 401(k) but less administration.
Our Services in Plan Setup & Management
At Vanator Financial Services, we guide you through the full retirement plan process: analyzing your business size, reviewing employee demographics, and helping you select the plan that provides the most tax and retirement benefits. For 401(k)s, we coordinate with third-party administrators to handle plan design, compliance, and record-keeping. As CPAs, we make sure your retirement plan works seamlessly with your tax strategy.
Owner-Only Businesses
If you’re a sole proprietor or run a business with just your spouse, a Solo 401(k) may be your best option. With combined employee and employer contributions, these plans often allow much higher savings than a SEP or SIMPLE IRA. For self-employed professionals in Eaton Rapids and Lansing, Solo 401(k)s are one of the most overlooked yet powerful tools for tax savings and retirement planning.
FAQs about Small Business Retirement Plans
How much can I contribute to a SEP IRA?
You can generally contribute up to 25% of your compensation, with annual dollar limits set by the IRS.
Do I have to contribute for employees in a SEP?
Yes. All eligible employees receive the same contribution percentage that you choose for yourself.
Can my business have both a 401(k) and a SEP?
Typically no—you must choose one. However, we help you decide which plan provides the greatest advantage.
What costs are involved in a 401(k)?
There are setup and administrative costs, but many of these expenses are deductible, and startup tax credits can offset much of the initial burden.