When it comes to retirement plans, most small business owners want the best of both worlds.  They want a plan that is relatively easy to administer and maintain, but at the same time allows them to contribute the maximum amount.

In many cases, this results in a comparison between establishing a one-person 401(k) plan and a Simplified Employee Pension Plan (SEP).

While there are advantages to establishing each type of plan, a Solo 401(k) plan offers several features not found with a SEP.  Hembree TPA, Inc. offers a comparison chart highlighting the provisions that frequently make a Solo 401(k) the more appealing option for many business owners.

As the rules regarding retirement plans are complex, business owners are strongly encouraged to work with a financial advisor and a pension consultant to determine which retirement plan is right for their business.

A Solo 401(k) Plan is not suitable for businesses with additional employees (other than other owners and working spouses) or those that are contemplating expansion in the near future.  If a sole-proprietor currently has employees or anticipates adding employees soon, they should work with a financial advisor and a pension consultant to select a plan that meets their overall business requirements.

Hembree TPA, Inc. offers a broad array of retirement plans designed for businesses of all sizes.  Please call us at (888) 486-401k or e-mail us at info@hembreetpa.com for a copy of the comparison chart or to obtain a customized Solo 401(k) Plan proposal.

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