Planning topic
Retirement Plans for Business Owners
Owners have choices about how they and their employees save for retirement, and each type of plan comes with its own rules, costs, and responsibilities.
Trino walks owners through the kinds of plans businesses commonly consider and the questions worth asking before choosing one: who is covered, who contributes, how much flexibility the owner wants, and how much administration the business is ready to take on.
What owners usually work through
- The kinds of plans businesses commonly consider, from SEP and SIMPLE plans to profit-sharing and defined benefit plans
- Who must be included, and the rules for treating employees fairly
- Who contributes: the business, the employees, or both
- The paperwork, reporting, and responsibilities that come with each plan
- How a plan fits with the owner’s own retirement and exit timing
Common questions
What kinds of retirement plans do business owners usually look at?
Common choices include SEP and SIMPLE plans for smaller employers, salary-deferral and profit-sharing plans, and defined benefit or cash balance plans for owners who want to set aside more. Each has its own rules for eligibility, contributions, and administration.
Can an owner set up a plan only for themselves if the business has employees?
Generally, plans that receive favorable tax treatment must follow rules about which employees are included and how they are treated compared with owners. Benefits aimed only at owners or executives are usually handled through different arrangements, each with its own trade-offs.
What responsibilities come with sponsoring a plan?
The business takes on duties such as choosing and monitoring providers, filing required reports, and acting in employees’ interest when making plan decisions. Many owners work with a plan administrator and their CPA to handle these.
How often should an existing plan be reviewed?
Whenever the business changes in a meaningful way: more employees, a change in profits, a new partner, or a planned exit. A plan that fit when the business was small may not fit it now.
Retirement Plans for Business Owners near you
Trino talks with business owners across the Houston area. Each page below covers the same questions for owners in that community.
General education, not advice — talk with Trino and your own CPA or attorney before making a decision. Nothing is sold on this site.