Small business retirement planning may seem like a daunting task when you first think about it. Small business retirement planning involves determining your intended nest egg, how much you can afford to contribute, and what type of plan to use. One thing is for sure--an experienced financial advisor can make small business retirement planning a very simple task.

Plans to Consider with Small Business Retirement Planning

As an owner of a small business, it is important to plan for the future of your business as well as the future of your finances. Retirement planning involves determining your retirement nest egg goal. To arrive at this figure you must take into account your current salary, inflation rates, social security, taxes and annual returns. It might sound complicated at first but a financial calculator makes it very simple. Financial calculators can be found online or at your local investment advisor's office.

Desired funding of the retirement plan will determine what type of plan you want to use. Different small business retirement accounts have varying contribution limits. 401K plans have limits of $13,000 while SEP IRAs have contribution limits up to $40,000 in some instances. Affordability and flexibility of funding is another thing you will want to consider when deciding which type of plan to use.

The types of plans available for small business range from complicated to very simple. Keogh plans are the most complicated plans that a business can adopt. Other plans available are the 401K plans, traditional and individual, and SEP IRA plans. 403B plans are available for not-for-profit organizations such as hospitals and teaching institutions.