Retirement Plan Options for Individuals and Business Owners
The right plan for you
Choose the Right Plan to Maximize Tax Benefits and Retirement Savings
MVM Advisors helps individuals, self-employed professionals, and business owners evaluate and implement the retirement plans best suited to their goals. Here’s an overview of the most common types of accounts and plans we support:
Retirement plans
Individual/Solo 401(k)
Sole Proprietors
Self-employed individuals with no employees
Professionals like consultants, attorneys, architects, and doctors often benefit from Solo 401(k)s.
- Allows both employer and employee contributions, resulting in higher potential savings than other small business plans
- Lower administrative burden compared to traditional 401(k)s
- Tax-free loans permitted within plan limits
- Contribution limits: Up to $66,000 for 2023 (plus catch-up for those 50+)
Let MVM show you how even modest contributions can significantly reduce your current tax burden while building retirement security.
SEP IRA
Self-employed individuals
Small Business owners
- Easy to administer and flexible contribution levels each year
- No required annual contributions, making it suitable for fluctuating cash flow
- Employer contributions only (up to 25% of compensation, capped annually)
SEP IRAs offer powerful savings potential with minimal complexity.
SIMPLE IRA
Small Businesses offering pre-tax salary deferrals
- Employees contribute pre-tax; employers must match or contribute a fixed amount
- Easy to set up and maintain
- Contribution limits are lower than 401(k) but higher than traditional IRAs
A SIMPLE IRA can be a great recruiting and retention tool for small businesses.
401(k) Plan
Growing businesses
- Supports both traditional (pre-tax) and Roth (after-tax) contributions
- Employer matching and vesting schedules available
- Broad plan design flexibility for employers
A 401(k) plan can help attract and retain top talent while supporting business growth.
Safe Harbor 401(k)
Business Owners Maximizing Contributions
- Automatically satisfies non-discrimination testing when safe harbor rules are followed
- Offers pre-tax and Roth contribution options
- Allows full deferral of income taxes on participant contributions
An excellent plan for owners who want simplicity and full participation flexibility.
Profit Sharing Plan
Employers seeking maximum flexibility
- Employer decides annually how much to contribute
- Can be paired with other plans like 401(k)s
- Contributions are discretionary and can be tied to company performance
Motivate employees and reward profitability with this adaptable plan.
Money Purchase Pension Plan
Businesses with unionized workforces
fixed retirement contributions
- Requires a set annual contribution formula (e.g., % of compensation)
- Often used to provide predictable benefits in collective bargaining settings
Can supplement existing plans to foster employee loyalty and long-term engagement.
Cash Balance Plan
Successful businesses
high-earning owners
- A hybrid defined benefit plan that looks like a 401(k) to employees
- Provides high contribution limits and significant tax savings potential
- Employer assumes investment risk and has minimum annual funding requirements
This plan is best for businesses looking to accelerate retirement savings and reduce taxes.
New Comparability Plan
Business owners wanting to reward key employees disproportionately
- A profit-sharing plan that classifies employees into groups with different contribution levels
- Helps maximize contributions for owners or highly compensated staff while controlling costs
These plans must pass nondiscrimination testing but offer targeted value.
403(b) Plan
Nonprofit Organizations
Educational Institutions
- Offers both pre-tax (traditional) and Roth contributions
- Flexible contribution limits and automatic enrollment options available
- Investments limited to mutual funds and annuities
A strong, tax-advantaged plan for qualifying employees of schools, hospitals, and nonprofits.
Resources
Need help selecting the right plan for you or your organization?
Schedule a consultation with MVM Advisors—we’ll walk you through your options and build a strategy around your needs.
