2 . SEPIRAs MEET ROBERT P . RUSSO , CPA PC
If choosing a 401 ( k ) plan and administering it seems a bit overwhelming , there are simpler options . Case in point : Simplified Employee Pension Individual Retirement Accounts ( SEPIRAs ). Businesses of any size can establish a plan to offer these accounts by completing Form 5305SEP , “ Simplified Employee Pension — Individual Retirement Accounts Contribution Agreement .” But there ’ s no annual filing requirement .
From there , you set up and wholly fund a SEPIRA for each participant . Employer contributions immediately vest with participants who own their respective accounts . What ’ s nice is you can decide each year whether and how much to contribute . In 2025 , contribution limits will be 25 % of an employee ’ s compensation , up to $ 70,000 ( up from $ 69,000 in 2024 ).
3 . SIMPLE IRAs
Another less complex approach is sponsoring Savings Incentive Match Plan for Employees ( SIMPLE ) IRAs . However , only businesses with 100 or fewer employees can offer them . Like SEPIRAs , these are accounts you set up for each participant . They may choose to contribute to their SIMPLE IRAs but don ’ t have to . Employer contributions are required , but you can opt to either :
• Match employee contributions up to 3 % of compensation , which can be reduced to as low as 1 % in two of five years , or
• Make a 2 % nonelective contribution , including to employees who don ’ t contribute .
Participants are immediately 100 % vested in contributions , whether those funds come from you or their own paychecks . The contribution limit in 2025 will be $ 16,500 ( up from $ 16,000 in 2024 ).
Many Options
To be clear , these are but three options among many different retirement plan types that growing businesses can sponsor for their employees . Our firm can help you weigh the pros and cons of all of them , including forecasting the costs involved and understanding the tax implications .
As the founder and principal of Russo CPA , P . C , Bob pleasantly surprises clients ( plus the IRS and lawyers ) with his proactive , caring , and interested approach . Bob ’ s authentic passion for both numbers and people is why his accounting firm is sought after by everyone from solopreneurs to CFOs . And it ’ s what energizes his fastgrowing team of top CPAs who follow his lead by providing impeccable service to clients – without the CPA geek speak .
The only thing geeky about Bob is his favorite reading material : the latest tax regulations , codes , and rulings ( so he can secure every possible tax advantage for his clients ). You might mistake Bob for the charismatic entrepreneur and CFO behind an internet travel startup or a visionary real estate developer . That ’ s because he held those roles during his 30year career as an accountant , which began at a highprofile accounting firm . While CPAs aren ’ t required to have “ field ” experience , the best ones do . But Bob doesn ’ t define success by his own achievements , it ’ s what he achieves for his clients . Because of his entrepreneurial past , Bob relates so well to his clients . In addition to serious tax savings most firms would miss , he empowers his clients with realworld accounting and financial insights to increase business .
Bob is even resultsdriven outside of work , whether it ’ s finishing the 2012 NYC Iron Man or volunteering for 12 years as President of a kids ’ soccer league . While his bottomline results are always impressive , what matters to Bob are the people who benefit from them .
When he ’ s not immersed in accounting , Bob is with his family , cooking up elaborate 18course meals or globetrotting . your comments .
Robert P Russo CPA PC Certified Public Accountants 231 W . 29th Street ( bet 7th & 8th Ave ) Suite 500 New York , NY 10001 O : 2122799800 C : 9172079278 F : 8663962310 www . robertprussocpa . com
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