In this video I’ll take a detailed look at the Tax Advantaged retirement plans: SIMPLE/SEP IRA & 403(b) (aka Tax Sheltered Annuity or TSA). I’ll discuss the eligibility for both Employers & Employees, Contribution maximums, Tax benefits, Investment availability & responsibility, retirement certainty of benefits and costs. All the data is as of 2021 tax year, in the future these numbers tend to change and get adjusted for inflation (FYI). I hope you enjoy the video….(read more)

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When it comes to planning for retirement, many small business owners and their employees may find themselves overwhelmed by the vast array of retirement plan options available. Among them, SIMPLE IRA, SEP IRA, and 403(b)/Tax Sheltered Annuity (TSA) plans stand out as popular choices for businesses looking to provide retirement benefits for their employees while also saving for their own future.

The SIMPLE (Savings Incentive Match Plan for Employees) IRA is designed specifically for small businesses with fewer than 100 employees. It allows both employers and employees to make contributions, and the contributions are tax-deductible for the employer and tax-deferred for the employee. This plan is ideal for small businesses that want a straightforward and easy-to-administer retirement plan without the complex compliance requirements and administrative costs associated with other types of retirement plans.

On the other hand, the SEP (Simplified Employee Pension) IRA is suitable for small businesses, self-employed individuals, and independent contractors. The employer can make contributions on behalf of all eligible employees and themselves, and the contributions are also tax-deductible for the employer and tax-deferred for the employee. The flexibility and tax advantages of a SEP IRA make it an attractive option for businesses looking to provide retirement benefits to their employees while maximizing their own retirement savings.

403(b) and Tax Sheltered Annuity (TSA) plans, on the other hand, are specifically available to employees of certain tax-exempt organizations, public schools, and certain non-profit organizations. These plans allow employees to make tax-deferred contributions to their retirement savings, making it an attractive option for those in the education and non-profit sectors.

In addition to the tax advantages and flexibility of these retirement plans, they also provide a valuable benefit to employees and can be a key tool in attracting and retaining top talent. By offering a retirement plan, businesses can show their commitment to their employees’ long-term financial well-being and create a more positive and loyal work environment.

In part 1 of this series, we have covered the basics of SIMPLE IRA, SEP IRA, and 403(b)/Tax Sheltered Annuity (TSA) plans and their suitability for different types of businesses and organizations. In the next part, we will delve into the specific features and requirements of each plan, as well as the factors that businesses should consider when choosing the right retirement plan for their needs. Stay tuned for more on SIMPLE & SEP IRA, 403(b)/Tax Sheltered Annuity (TSA) Business Retirement Plans.