What is best retirement plan option for someone who has a small busine

[Guest MapleONE]

Already maxing out on 401(k) at regular job and Roths. Side business has a few employees, but owners don't want to include them in plan. Are there any plans that would allow owners to put aside money tax-deferred?

[actuarysmith]

At the risk of asking some painfully obvious questions-

1. are the employees (non-owners) full time?

2. are the owners older (on average) than the other employees?

3. any chance the employees are covered by a union?

4. what sort of income levels do the owners have?

5. what is the corporate entity type? (C-Corp, S-Corp, LLC, etc.)

6. What sort of deduction level are they looking for?

Your question is too vague to answer without a little more detail............

[Guest MapleONE]

More information:

1. Employees are all part time.

2. Most employees are older than owners.

3. No union.

4. Owner income from current full time jobs - $90,000-140,000. Expected income per owner from this business $20,000.

5. S-Corp

6. Would like to save as much as possible.

thanks

[mbozek]

The S corp can set up a discretionary PS plan and make a deductible contribution of up to 25% of the compensation of eligible employees. Plan can exclude all employees who work less than 1000 hours a year but exclusion would apply to owners who work less than 1000 hours a year.