Retirement plans for businesses
Key Points
- Ameriprise Financial offers a variety of retirement plan options, including 401(k) and SEP plans as well as SIMPLE IRAs.
- Different plans have a variety of features, benefits and tax advantages.
A range of retirement plans are available to address the retirement needs for you, your business and your employees.
Business retirement plans can offer tax-deductible contributions and tax-deferred growth opportunities. For people age 50 or above, many of these plans provide a catch-up contribution option.
Plans can offer an array of investment options: mutual funds, self-directed brokerage accounts or professionally managed accounts; investments vary by plan.
401(k) plan
Our Ameriprise financial advisors work with several 401(k) plan providers to help you select the solution that best meets your business needs. In general, a 401(k) plan:
- Allows employers to make pre-tax contributions up to 100% of eligible compensation (annual contribution maximum determined by the IRS)
- Allows employee salary deferral contributions
- Can include an employer matching contribution
- May provide employees the options for loans and Roth deferrals
Individual(k) plan
An Ameriprise® Individual(k)TM plan is an individual 401(k), designed for self-employed individuals to help maximize retirement savings. The Individual(k) plan:
- Is available to business owners, partners and their spouses
- Has the same contribution limits as a regular 401(k) plan but simplified, lower cost administration
- Allows for loans and Roth deferrals
SEP plan
With the flexibility to align employer contributions with business activity each year, a SEP (Simplified Employee Pension) plan can be a cost-effective way to help employees save for retirement. A SEP plan:
- Requires contributions to be made by employers, but can vary from year to year based on your business activity
- Allows employers to make tax-deductible contributions up to 25% of eligible compensation (annual contribution maximum determined by IRS)
- Is commonly used by business owners with high wages and a limited number of eligible employees
- May offer consolidation of retirement accounts through rollovers from former employers' plans or in other IRAs
SIMPLE IRA
With easy administration and little paperwork, this plan lives up to its name. The SIMPLE (Savings Incentive Match Plan for Employees) IRA can be a cost-effective way to attract and retain top talent. A SIMPLE IRA:
- Is available to small businesses with 100 or fewer employees
- Allows employers to deduct contributions as a business expense
- Is funded primarily by participant salary deferrals, but requires employer match or non-elective contribution each year
Investment Only account
An Ameriprise® Investment Only account provides investments for certain qualified retirement plans serviced by parties other than Ameriprise.
This allows you to work with the plan service provider you choose and take advantage of a wide array of investment products available through Ameriprise.
Take the next step
Contact an Ameriprise financial advisor today to find retirement planning solutions that work for you, your business or your employees.