Low fee 401k plan for Architects

Is it easy for architects to enroll on a low fee 401k plan? Without a doubt,  the answer is yes.

Today, companies are making enrolling as easy as possible.  Owners of businesses such as small, self-employed, or large businesses can enroll online.

Setting up a retirement plan such as a 401k for your business helps to save for retirement, provides additional business tax deductions and helps keep employees on board.

The most common low fee retirement plans for architects are:

• Simplified Employee Pension Plan (SEP IRA):

  • Plan in which employers contribute to their employees’ Traditional IRAs or SEP IRAs. Small business, self-employed individual that establish this plan, excluding the necessity of having high administration costs. Furthermore, employer’s obtains tax deductions from contributing with low fees, benefiting themselves and employees participating.

• Saving Incentive Match Plan for Employees (SIMPLE IRA):

  • A plan designed for employers and self-employed architects that own a business. Contributions are done by elective-deferrals or salary- reductions, benefiting with tax deductions. The SIMPLE IRA has a low fee starting and maintenance cost from which both employees and employer have control over it.  Above all, this plan follow everything from a Traditional IRA.

• Self-Employed or Solo 401k plan:

  • These plans were created for small business owners that have no full-time employees. This plan brings equal tax benefits as a Traditional 401K, making it one of the most popular plans for self-employed architects. Full coverage can be provided for both the owner and spouse, making it unique in its kind for interested individuals.

• Traditional 401k:

  • A company’s retirement plan provided to employees. Employers are responsible to make contributions to employees, but it also allows the workers to contribute. Individuals participating in the plan pay taxes at withdrawal.

• Traditional IRA:

  • Saving account in which contributions might be tax deductible and earnings can grow tax-free. If a withdrawal is done when you are fifty-nine and a half, then taxes will be charged.  Over the age of fifty, individuals are eligible for placing $6,500 a year for retirement.

• Roth IRA:

  • In this saving account contributions aren’t deductible from taxes. In fact, you pay taxes on contributions going into your account. Participants at the age of fifty-nine and a half can withdraw from their saving accounts, having the funds to be tax-free.