Retirement Plans For Small Businesses

Retirement Plans For Small Businesses-41
The requirement appears to be flying under the radar, according to Eric Frazer, senior business development for HR services firm and SCRS 401(k) partner Decisely.He said whenever he tells someone in California about the law, “it’s still brand-new news.” The law kicks in June 30, 2020, for companies with more than 100 employees; June 30, 2021, for businesses with more than 50 employees; and June 30, 2022 for employers of five or more people.

If you have employees, you may feel responsible for helping them plan for a successful retirement.You can also contribute to an IRA on your spouse’s behalf.Roth IRAs let you contribute after-tax dollars and take tax-free distributions in retirement; traditional IRAs let you contribute pretax dollars, but you’ll pay tax on the distributions.A business owner taking the Cal Savers route basically has to sign up for the program, give employees the chance to join or opt-out, and make sure their contributions go to their IRA “via simple payroll deduction,” according to the Cal Savers website.“The program is required to have minimal administrative requirements for employers and state law protects employers from any liability or fiduciary responsibilities,” the California Employment Development Department’s website states.To prepare to sell your small business one day, it needs to be able to operate without you.It’s never too early to start thinking about how to accomplish that goal and about how to find the best buyer for your small business.Market conditions will affect your ability to sell your business.You might want to build flexibility into your retirement plan so you can sell your stake during a strong market or work longer if a recession hits.Penalties include fines of 0 for each employee not registered after 90 days and 0 per employee not registered after 180 days, according to Krista Lebeck, Payroll Company retirement education manager..The good news: Complying with the requirement shouldn’t be very onerous from a shop owner’s perspective, according to both Frazer and Lebeck.

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