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Small-business retirement planning is easier to navigate than you might think.

Small-Business Retirement Options
Whether you are self-employed or the owner of a small business, you have several great retirement plan options available to you—each with its own set of advantages. Here’s a run down of each of those options:

Simplified Employee Pension Plan (SEP-IRA)
The SEP-IRA is available for all self-employed individuals and business owners and is a relatively low cost option. Employers can contribute up to 25% of an employees annual compensation (20% for the self-employed) for a total yearly payout of up to $45,000.

Under this plan, the employer must contribute to each employee who has worked for the company for three of the last five years and has earned at least $500 in the last year. A particular benefit of the SEP-IRA is that annual contributions are not mandatory, giving employers the flexibility to back off of retirement contributions in lean years.

Employer contributions are tax deductible. Employees may not make additional contributions to the plan.

401(k)
401(k)s are open to all businesses, including owner-only businesses and allow both the employer and the employee to contribute to the account. The employer can select the contribution level, (up to $45,000 a year for those under 50 and $50,000 for those over 50) and may choose whether or not to match employee contributions.