I currently have a SIMPLE. I essentially put $1000/month into it or the $15,000 a year plus the 3%. I feel like I am paying too much tax along with the rest of the world. I want to adopt another plan but I am unsure of the costs per employee etc. I have 3 employees and would love to put away more for them but I’m just a bit unsure of cash implications…
1. One year’s performance does not make or break a retirement plan or any investment for that matter.
2. How have you factored the $15k into their overall compensation package?
I would agree though – if your retirement plan is consistently inefficient as it relates to costs vs. benefits and if you don’t factor in the staff contributions when determining raises and bonuses, this plan may not be your best option.