This is Part 3 of our series on the best tax-advantaged retirement plans for small businesses.
Here are the titles and links to Parts 1 and 2:
The Best Small-Business Retirement Plans: Part 1
The Best Small-Business Retirement Plans: Part 2, the Simplified Employee Pension (SEP) Option
In this article, we cover the SIMPLE-IRA option, which is an easy-to-live-with type of defined contribution plan.
The best thing about a defined contribution plan is that your annual contribution is completely discretionary. So you can contribute little or nothing in years when cash is tight.
As you will see, the SIMPLE-IRA option is especially well suited to small businesses that produce modest amounts of income.
Self-employed individuals can set up SIMPLE-IRAs, as can one-employee corporations and other employers with up to 100 workers.
If You Are Self-Employed
If you are self-employed as a sole proprietor, LLC member, or partner, you can make annual deductible contributions to your SIMPLE-IRA ... Log in to view full article.