The Ryding Company offers Retirement For Your Employees As A Small Business

Retirement Planning From The Experts | The Ryding Company

Are you a small business in or near Westlake Village in need of retirement for you and/or your employees? Look no further than The Ryding Company! Here are a few facts about your local retirement planning experts:

  • » 40+ years as a leader in the ERISA plan administration community
  • » Served expertise and quality compliance administration for over 2,500 businesses
  • » Currently, manage over 1,000 ERISA retirement plans!

To find the retirement plan perfect for your local small business, keep reading to learn more about the options available to you! To speak with one of our retirement planning experts, call us directly at 866.764.9222.

Retirement Planning For Small Business Owners + Employees

At The Ryding Company, we believe in retirement planning made easy. When looking for a retirement plan that fits you and your business’ needs, start off by asking the following key questions!

Quick Questions

  • » Does your business have or expect to have any common law employees?
  • » Do you want employees to be able to make their own contributions to their retirement plans?
  • » Which is more important to you and your employees: maximum contributions or simple administration?

The 4 Types Of Retirement Plans For Small Businesses

Depending on the size and scope of your small business, there are four main types of retirement plan options to choose from. They include the following:

  • » Simplified Employee Pension Plan (SEP IRA)
  • » Savings Incentive Match Plan For Employees (SIMPLE IRA)
  • » Self-Employed 401(k) Plan
  • » Standard 401(k) Plan (These plans tend to be better for larger companies due to set-up costs, administration fees, fiduciary responsibilities, etc.)

In this blog, we’ll be focusing on the first three retirement plan offerings since they are best suited for local small businesses, while traditional 401(k) plans incur high costs and fees–making them better for larger options.

Why Small Business Retirement Plans Are Important

If you’re a local small business owner still on the fence about investing into retirement for you and your employees, here are a few benefits that you can experience firsthand by choosing the right plan:

  • » A retirement plan can help secure your future while helping your valued employees secure theirs.
  • » Offering retirement plan keeps your business competitive when it comes to attracting and keeping good employees–and thus, reducing costly turnover.
  • » There are potential tax benefits to offering a plan since, more often than not, business owner contributions are deductible as business expenses.

Tax Benefits For Business Owners

For many small business owners, the tax benefits that retirement plans present are a major draw and selling point. Here are some more details about potential tax benefits, depending on your retirement plan:

Our Best Retirement Planning experts provide all Tax Benefits For Business Owners
  • » Most plans offer tax-deferred growth potential, which means that contributions can grow over time without being reduced by current taxes.
  • » As mentioned earlier, employer contributions can be deducted as a business expense at the end of each fiscal year.
  • » Business owners can receive a tax credit of up to $500 for certain expenses incurred while starting and maintaining a retirement plan for each of the first 3 years (this is applicable only if this is the first time your business is offering a plan).

Read on to learn more about each small business retirement plan in detail. For any additional questions regarding tax benefits and setting up your own retirement plan, contact The Ryding Company directly here.


SEP IRAs are for either of the following: self-employed people or small-business owners with any number of employees. Contributions are made by the employer only and are tax-deductible as a business expense.

Ideal Candidates

  • Self-employed individuals or small-business owners, including those with employees
  • Sole proprietors, partnerships, corporations, S corporations

Key Benefits

  • Easy to set up and maintain
  • No initial se-tup or annual maintenance fees


  • Employer only, though employees may make traditional IRA contributions to the account

Contribution Limits

  • Employer contributes up to 25% of eligible employee compensation or up to a maximum of $56,000 as of 2019
  • Employer must match employee contributions by percentage


  • No Form 5500 needed
  • Employee notification of employer’s contribution (if applicable)

Asset Accessibility

  • Withdrawals are authorized at any time, which are subject to current federal income taxes and a possible 10% penalty if the participant is under the age of 59½


Similar to a traditional 401(k) plan, a SIMPLE IRA is for businesses with 100 or fewer employees and is funded by tax-deductible employer contributions and pre-tax employee contributions.

Ideal Candidates

  • Companies with 100 employees or fewer (assuming they don’t have any other retirement plan)
  • Sole proprietors, partnerships, corporations, S corporations

Key Benefits

  • Salary reduction plan with less administration
  • Low-cost options of $25 per participant or $350 flat-rate plan


  • Employer and employee

Contribution Limits

  • Mandatory business contribution of either: a) 100% match on the first 3% deferred (match may be reduced to 1% in 2 out of 5 years) or b) A 2% nonelective contribution on behalf of all eligible employees–no additional business contribution may be made
  • Employee contributes up to 100% of eligible compensation through salary deferral, not to exceed $13,000 as of 2019
  • Catch-up contributions of up to $3,000 (2019) available for those age 50 or older


  • No Form 5500 required
  • Certain annual employee notifications

Asset Accessibility

  • Withdrawals can be made at any time; if an employee is under the age of 59½, withdrawals may be subject to a 25% penalty if taken within the first 2 years of beginning participation, and possibly a 10% penalty if taken after that time period

Self-Employed 401(k) Plan

A Self-Employed 401(k) plan is a tax-deferred retirement plan for self-employed individuals. This option offers the most generous contribution limits of the 3 plans, but is only eligible for businesses with no “common law” employees, which refers to any hired person who does not have an ownership interest.

Ideal Candidates

  • Self-employed individuals or business owners with no employees other than a spouse (and no plans to add employees)
  • Sole proprietors, partnerships, corporations, S corporations with no common-law employees

Key Benefits

  • Generous contribution limits
  • No initial set-up or annual maintenance fee


  • Employer and employee (assuming the employee is the business owner or spouse)

Contribution Limits

  • Employers may contribute up to 25% of eligible compensation up to a maximum of $56,000 as of 2019
  • Up to $19,000 in salary deferrals; $24,500 if age 50 or older
  • Total contributions to a participant’s account, not counting catch-up contributions for those age 50 and over, which cannot exceed $56,000 as of 2019


  • Annual Form 5500 is required after plan assets exceed $250,000
  • Periodic plan amendments for legislative changes

Asset Accessibility

  • Withdrawals from the plan are prohibited until a “trigger” event occurs, such as termination of service or plan termination; withdrawals are subject to current federal income taxes as well as a 10% penalty if the participant is under the age of 59½

Retirement Planning FAQ

Before setting up a retirement plan for your small business, any owner and executive are bound to have preliminary and initial questions. Here are some of the most common questions the retirement planning experts at The Ryding Company receive in regards to small business plans!

» Can an LLC have a retirement plan?

Simply put, yes. A limited liability company (LLC) is eligible to establish a Simplified Employee Pension (SEP) IRA. SEP IRAs were designed to make it easy for small-business owners, self-employed individuals, and freelancers to set up a tax-advantaged retirement plans, including LLCs.

» How do I set up a 401(k) plan for my small business?

If your small business opts for a traditional 401(k) retirement plan, these are the following steps that lead to a successful set-up for you and your valued employees:

Learn traditional 401(k) retirement plan and how to Setup 401k plan for Small Business company
  • » First, decide who is establishing and maintaining the plan–this is usually a head accountant or Controller.
  • » Create a written plan document.
  • » Then arrange a trust for the plan’s assets.
  • » Come up with a savvy, organized recordkeeping system.
  • » Distribute plan information to eligible employees for enrollment.

Learn also: How To Set Up The Best 401(k) Retirement Plan For Your Small Business

» How much will it cost to set-up and maintain a 401(k) plan for my small business?

Although traditional 401(k) tend to be more costly for business owners, they help enhance the overall reputation for companies, which can help you attract highly valuable employees. Initial set up fees range from $500 to $3,000, depending on the size of your company and the benefits you select. Keep in mind that Simple 401(k)s are less expensive. Business owners can expect to pay anywhere between $500 and $1,000 per year, plus $20 to $50 for each plan participant (this excludes ongoing administration costs).

Do you have any additional questions about how to choose the best retirement plan for your small business? Contact one of our retirement planning experts today to discuss your options. Call us directly at 866.764.9222.