If you start researching small business pension options, the alternatives quickly overwhelm. Banks, financial planners, insurance agents and many others clamor for your attention and offer up what they tout as the obvious best option.Fortunately, you enjoy wonderful easy pension options for your business. These easy options are usually available regardless of whether you operate as a sole proprietorship, partnership, limited liability company or corporation. And for many small business owners, the easy options also often represent the best value.Easy Option #1: A Traditional Individual Retirement AccountTo start, don’t overlook the traditional individual retirement account. No matter what your family income, if neither you nor your spouse are covered by some other qualified retirement plan, you can deduct contributions to a traditional IRA. Typically, neither the business nor the individual pay fees or pay only modest fees to have an IRA in place.Regular annual contributions to a traditional IRA grow large over time. A $5,000 annual contribution (the standard amount allowed in 2008) made over 35 years grows to more than $550,000 after adjusting for inflation. (I’m assuming you can earn a six percent real, or adjusted for inflation, rate of return in this scenario and the others that follow.)That […]
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