20900 NE 30th Avenue, Aventura, FL 33180

Retirement Plans for Business

Savings Incentive Match Plan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan.

Employer Eligibility – Any employer with one or more employees. No annual filing requirement for employer. Bank or financial institution handles all of the paperwork.

Employee Contribution – can contribute up to $16,000 in 2024 through salary with.

Employer Contribution – must match 100% of employee contributions up to the first 3% of compensation.

Coverage Requirement — must be offered to all employees

SEP Plan

A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees. A business of any size, even self-employed, can establish a SEP.

Employer Eligibility – Any employer with one or more employees. No annual filing requirement for employer. Bank or financial institution handles all of the paperwork.

Employee Contribution – no contributions allowed.

Employer Contribution – Up to 25% of compensation but no more $69,000 for 2024

Coverage Requirement — Must be offered to all employees who are at least 21 years old, employed by the employer for 3 of the last 5 years and had compensation of at least $600.

401(k) Plan

A 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts. Employee contributions are excluded from employee taxable income.

Employer Eligibility – Any employer with one or more employees. Requires annual nondiscrimination testing to ensure that plan does not discriminate in favor of highly compensated employees. Employer must file annual Form 5500. QBO offers managing new 401(k) plans and will charge monthly fees starting at $39 per plan +4 per participant.

Employee Contribution – can contribute up to $22,500 in 2023 through salary deductions.

Employer Contribution – Up to the lesser of 100% of compensation not exceeding $66,000 for 2023 per employee. Employer can deduct amounts that do not exceed 25% of aggregate compensation for all participants.

Coverage Requirement — Must be offered to all employees at least 21 years old who worked at least 1,000 hours in a previous year.