CPA Retirement Plan options

An employer can offer you many benefits however the best one of all would be a retirement plan. This is a tool that employers use to attract as well as keep, employees who are highly qualified.

A CPA is able to offer a large number of retirement plans, whose specifications and features suit the needs of both individuals, as well as businesses.

CPAs offer three types of retirement plan, being the individual retirement plan – or IRA, the Corporate Retirement Plan as well as Retirement plans for the self employed.

Corporate retirement plans can be further classified into three categories:

• A simple IRA – which is like a retirement account for an individual. These are available in various types such as are the Simple IRAs, the traditional IRA, SEP IRA as well as the Roth IRA. Employers normally establish the simple IRA, while contributions made individually by participants go to a Simple or SEP IRA.

• A Simplified Employee Pension is a retirement plan which can be set up by both employers as well as self-employed persons.

• A Qualified Plan on the other hand, is set up by an employer, to provide retirement benefits for his employees and his beneficiaries.

• Finally a 401k plan is a plan that can take contributions by both the employee as well as the employer. This is applicable only for an individual who is a sole owner of a business, and his spouse.

When it comes to Individual retirement accounts, we find the traditional and the Roth IRA. The Roth IRA is the better option for the younger individual, or for someone who things that after retirement, he will be in a higher income tax bracket.

A Self-employed Retirement Plan follows the same rules as the corporate one. The major difference is that self employed persons or those who have a partnership, pay their tax on the 1040 as opposed to the Schedule C.

Reference: http://www.theking-ofcontent.com/351/cpa-retirement-plans-2/