Best Small Business Retirement Plans to Establish


Your small business might feel your company is not big enough to consider retirement plans for your employees. You may need to know just how many options there are for businesses of all sizes, including small businesses like yours.

Retirement Plans to Understand

Offering a retirement planning solution for your employees could earn your business tax savings. There are a few common plan options you can consider.

401k Plans

There are only a few retirement plans under the 401k moniker. Although you may be familiar with them, there are plan options you might need to learn about.

Traditional 401k Services

A traditional 401k allows employees to contribute more of their income annually than many other plans, though they are subject to an annual contribution limit. They also provide the option for either pre-tax or post-tax contributions. Employers can also contribute to each employee’s account. These are ideal because the delayed vesting encourages employee retention.

Safe Harbor 401k Plans

A Safe Harbor 401k plan resembles the traditional fund with only a few notable exceptions. First, the Safe Harbor plan requires employer contributions instead of making them optional. In addition, the funds contributed vest fully when contributed, so there is no waiting period. It is an ideal solution for aggressive retirement investment to build the fund quickly.

Solo 401k Options

Sole proprietors often feel overlooked in terms of retirement fund choices. Some funds work for individual entrepreneurs, like the solo 401k. These funds are only available to the business owner and their spouse. As the business owner, you can contribute as both the employee and employer, allowing you the same benefits as a standard company’s contribution structure.

IRA Retirement Plans

In addition to the standard 401k plans, some businesses also consider IRA options.

Simple IRA Options

Many employers choose a Simple IRA for ease of establishment. It is easy to set the funds up, and employers pay no setup fees. The funds allow for low contribution percentages and lower employer match rates. In addition, self-employed individuals can choose a Simple IRA.


A SEP IRA plan only accepts employer contributions. If a business owner wants to establish retirement funds for employees without asking employees to contribute, this is the option to consider.

Traditional IRA Retirement Accounts

A traditional IRA is available to virtually everyone, making it widely accessible. They have a low annual contribution limit, which restricts how quickly the fund grows. Traditional IRA funds also have mandatory distributions.

Roth IRA Funds

A Roth IRA is the soundest choice for those looking to contribute late in life because they have no age limit on contributions. All contributions are post-tax, making them ideal if you anticipate a higher tax rate after retirement.

Choosing the Right Retirement Plans

It may feel overwhelming when you start looking at the different small business retirement plans. Understanding the choices makes it easier to decide. These are the most common retirement plans for small business owners to offer their employees.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.