For more information about the author, click to view their website: Edward Jones
If you’re a business owner, you’re
always thinking about the days ahead. What can I do to boost sales in the
next year? What trends should I be watching? What’s the forecast for my
industry? But there’s one element of the future you might be overlooking:
your retirement plan.
Consider
these advantages of establishing a retirement plan for your business:
•
You’ll build resources for your retirement. You might sell your business
one day, but can you count on that to fund your retirement? By investing in a
retirement plan for many years, you can help accumulate the resources you will
need to enjoy life as a retiree.
•
You can help your business attract and retain employees. In a tight
labor market, you’ll want to employ all the advantages you can to attract and
keep good employees — and a retirement plan can help.
•
You can gain tax benefits. Your contributions to a retirement plan — on
behalf of yourself and your employees — can be tax deductible. Plus, you can
get tax credits for starting a new plan.
Here
are some retirement plans to consider:
• Owner-only 401(k) — This plan is
available to self-employed individuals and business owners with no full-time
employees other than themselves or a spouse. You may even be able to choose a
Roth option for your 401(k), which allows you to make after-tax contributions
that can grow tax free. In 2024,
the combined employee and employer contribution limit was $69,000, or $76,500
for those 50 or older. These limits are likely to rise in 2025.
• Personal
defined benefit plan
— You
can establish a pension plan, also known as a defined benefit plan, for
yourself if you’re self-employed or own your own business. For 2024, the annual
defined pension benefit for a business owner cannot exceed the lesser of
$275,000 or 100% of their average compensation for the previous three highest
consecutive calendar years.
• SEP IRA — If you have just a few employees or are self-employed
with no employees, you may want to consider
an SEP IRA. In 2024, your contribution limit was 25% of your salary or $69,000,
whichever was less. The percentage of your salary you contribute to your SEP
IRA is the same percentage of your eligible employees’ salaries you must
contribute to their SEP IRAs.
• SIMPLE IRA — A SIMPLE IRA is easy to set up and maintain, but while
it may be advantageous for your employees, it’s less generous to you, in terms
of allowable contributions, than an owner-only 401(k) or a SEP-IRA. In 2024,
you could contribute up to $16,000 to a SIMPLE IRA, or $19,500 if you are 50 or
older. You must put in 2% of your employees’ salaries, regardless of whether
they contribute, or match their contributions dollar for dollar, up to 3% of
their salaries.
And
keep this in mind: The SECURE 2.0 legislation has made it possible
for you to offer a Roth version of a SEP or SIMPLE IRA. Although contributions
to either Roth account are not deductible, earnings and withdrawals are tax free,
provided you (and your employees) are at least 59½ and have had your account at
least five years.
To learn more about these and other
business retirement plans, you might want to contact a financial professional.
But don’t wait too long — the sooner you start preparing for your retirement —
and helping your employees plan for theirs — the better.
Chad Choate III, AAMS
828 3rd Avenue West
Bradenton, FL 34205
941-462-2445
[email protected]
This article was written by Edward
Jones for use by your local Edward Jones Financial Advisor.
When an older adult needs help at home and sees several clinicians, a coverage decision can affect everything from prescription refills to rides. If youre considering TRU PACE in Lafayette, start by asking how enrollment would change the care and coverage you already use. How Medicare and Medicaid Fit Into PACEPACE is the Program of All-Inclusive Care for the Elderly. It coordinates healthcare and support for eligible adults who meet a state standard for nursing home-level care and can live safely in the community with PACE support at enrollment. Applicants must also be 55 or older and live in the programs service area. TRU PACE and Your Current CoveragePhone: 303-665-0115Medicare says people with Medicaid pay no monthly PACE premium. Medicare beneficiaries without Medicaid pay premiums for the long-term care portion and Medicare Part D drugs. Medicare also says participants owe no deductible, copayment, or coinsurance for drugs, services, or care approved by their PACE team. Ask TRU PACE for an estimate based on your individual coverage before enrolling. Doctors, Prescriptions, and Existing ServicesTRU PACE says it becomes the participants insurance provider at enrollment. Participants generally receive care through the programs provider network. Bring a list of your doctors, medications, and scheduled services. Ask which providers are in the network and how the team would coordinate any changes. Why This Matters in LafayetteIf you regularly see a clinician near home or have a specialist visit scheduled outside Lafayette, give the enrollment team the names and dates. Ask which appointments can continue and what to do about any refill due around the enrollment date. How to Get Started1. Gather Your Coverage InformationHave your Medicare and Medicaid information, if applicable, along with details of any current plan. List the appointments and prescriptions you rely on most.2. Ask for an Enrollment and Cost ReviewCall TRU PACE and ask for your expected monthly cost, when any coverage change would take effect, and who would help coordinate the transition. Related Seniors Blue Book CategoriesPACE Adult Day Services Care Management
After a death, families may have to make several decisions in a short time. Others prefer to talk through their wishes ahead of time. In either situation, it helps to separate the practical arrangements from the decisions about how to gather, remember, and say goodbye. What Funeral and Mortuary Services CoverA funeral home can help arrange transportation and care of the person who died, assist with paperwork, and coordinate burial or cremation. A family may also arrange a viewing, funeral, memorial, or private gathering. Ask which decisions need to be made immediately and which can wait. The Natural Funeral in LafayettePhone: 720-515-2344The Natural Funeral lists natural burial, flame cremation, water cremation, and terramation, also called natural organic reduction. Water cremation uses an alkaline water process, and terramation transforms remains into soil. If one of these options interests you, ask what the process involves, how long it typically takes, and what the family receives afterward. Planning a Gathering and Reviewing CostsThe Lafayette funeral home is at 102 W Chester Street in Old Town. Ask what can take place at the Lafayette location and which parts would involve another venue or a cemetery. Request a General Price List and a written breakdown of your choices so you can see which fees cover the funeral homes work and which come from outside providers. Why This Matters in LafayetteIf relatives are coming from out of town or some guests have limited mobility, ask about parking, step-free access, and how many people the gathering space can accommodate. If you plan to hold a service and burial at different locations, check how much time guests will need between them. How to Get Started1. Write Down the Persons WishesLook for written instructions and note any cultural or religious preferences. If youre planning ahead, tell a trusted person where you keep your instructions and whom to call.2. Ask for a Written PlanCall 720-515-2344 and ask what is needed on the first call. Once youve discussed options, request the expected timeline and itemized costs before approving arrangements. Related Seniors Blue Book CategoriesCounseling Hospice Advance Care Planning
When an older adult spends most weekdays alone, families may need more than a place for them to go. They may also be juggling transportation, appointments, and help at home. TRU PACE in Lafayette offers a day center as part of a program that coordinates those needs for eligible older adults. What Are Adult Day Services?Adult day services offer daytime support outside the home. Depending on the program, participants may spend time with peers, eat a meal, take part in activities, or receive help with daily needs. Some centers accept people directly. The Lafayette TRU PACE center serves people enrolled in its broader Program of All-Inclusive Care for the Elderly. TRU PACE in LafayettePhone: 303-665-0115TRU PACEs Lafayette center is at 2593 Park Lane. The program coordinates medical and social services and arranges transportation to the day center and medical visits as needed. Ask the enrollment team what a typical center day includes, how often a participant might attend, and how the team decides what support to arrange at home. Who May QualifyPACE applicants must be at least 55, live in the programs service area, meet the states standard for nursing home-level care, and be able to live safely in the community with PACE support at enrollment. Ask how enrollment would affect access to current doctors and prescription coverage before making a decision. Why This Matters in LafayetteWhen family members already drive someone to several appointments a week, a coordinated schedule can change who needs to be available and when. Ask how pickup would work at the persons Lafayette address and who to call if a ride or appointment changes. How to Get Started1. Ask for an Eligibility ReviewCall TRU PACE. Have the participants ZIP code, current coverage, and a short list of the help they need. 2. Ask to Visit the CenterFind out what the participant might do on a center day, how transportation works, and what changes to their current care arrangements enrollment would involve. Related Seniors Blue Book CategoriesCare Management Transportation Respite Care