Retirement Planning for Small Business Owners

An unfortunate truth of running a small business is that there is no retirement plan in place for you. There is no pension, no company 401k, and many small business owners can’t qualify for full Social Security benefits. Every penny beyond basic living expenses is often put back into the business, meaning nothing is put aside for your future retirement. And while some are able to sell their business at some point and earn enough to live comfortably in retirement, there should always be a plan in place for what happens when you are ready to retire.

The most common, and easiest option is a Traditional or Roth IRA. So long as you are showing income, these retirement accounts allow you to contribute up to $5500 per year, with an additional $1000 per year in “catch-up” contributions after age 50. For married couples, a spousal IRA can also be established …