A Wealth Strategy That
Works Alongside Your Business

A SEP IRA, SIMPLE IRA, and solo 401(k) differ primarily in who can participate, how contributions are made, and the level of flexibility each plan provides. A SEP IRA is funded entirely through employer contributions, making it relatively simple to administer and potentially attractive for businesses that want to make substantial contributions. Contributions generally must be made on the same percentage-of-compensation basis for eligible employees. A SIMPLE IRA allows employees to contribute through salary deferrals while also requiring the employer to make either matching or nonelective contributions. It is designed for small businesses that want to provide a straightforward retirement benefit for employees without the administrative requirements of a traditional 401(k). A solo 401(k) is generally designed for a business owner with no employees other than a spouse. The owner can contribute both as an employee and as the employer, which can provide significant contribution flexibility. The right choice depends on your business structure, whether you have employees, how much you want to contribute, and the role you want the retirement plan to play in both your business and personal wealth strategy.

The right amount depends on your business’s profitability, owner compensation, how much you are reinvesting in the company, your existing retirement assets, and the level of income you want to maintain later in life. We start with your longer-term retirement objectives and work backward to determine how much you should be setting aside today, while accounting for the competing demands on the business.

A buy-sell agreement can provide an important framework for what happens if an owner dies, becomes disabled, retires, or otherwise leaves the business. It can establish how an ownership interest will be valued and transferred before circumstances force the decision. We can help identify the financial and insurance considerations and coordinate with your attorney to ensure the broader strategy is properly addressed.

It depends on your business's income, ownership structure, compensation, and the tax and administrative implications of making the election. S-corporation taxation can offer potential tax benefits in some circumstances, but it also creates additional payroll and compliance requirements. We can work with your CPA to evaluate whether a change in tax structure makes sense as your business evolves.

Key-person coverage, business overhead expense insurance, and appropriate life and disability coverage are among the areas business owners may want to evaluate alongside more traditional commercial coverage. The right mix depends on the people, obligations, and financial risks that are most important to the business. We help identify potential gaps as part of the broader financial plan and coordinate with insurance professionals when specialized coverage is needed.

Yes, several retirement plan options may be available to a business owner with no employees other than a spouse. The appropriate choice depends on your business structure, income, contribution goals, and whether you want features such as employee or Roth contributions. We can help evaluate the available options and coordinate implementation with the appropriate retirement plan provider.