Compare SEP retirement funds for small business owners

Planning for the future, and not spending a fortune on doing so, is important for anyone, but especially for independent business owners. Simplified Employee Pensions (SEPs) are an affordable option if you are a small business with employees, because it does not require the start-up costs of many retirement funding programs.

I recommend: State Farm's retirement plan offers SEPs for business owners. New York Life also provides small business owners and employees with SEPs.

Consider establishing a Solo 401k plan to secure retirement funds

When you compare retirement funds, consider a Solo 401k plan, which allows you to max out your contributions to tax deferred retirement accounts. You receive a tax credit whenever you deposit money into your account, and contributions to the account are flexible. There is no set minimum amount to contribute - you could skip contributing for one year if necessary.

I recommend: Fidelity offers a self-employed 401k plan with no set-up fee or annual cost. Self-employed 401k retirement funding is a great option for sole proprietors and independent consultants. Wells Fargo offers flexible 401k plans for small business owners so you can change the amount your business contributes each year, if necessary.

Research payroll deduction IRAs as a retirement funding solution

A payroll deduction IRA (Individual Retirement Account) allows you to set the amount of money you plan to contribute each pay period into your IRA account. If you are 50 or older, you can contribute tax-deductible funds to a traditional IRA yearly. Roth IRAs, while not tax deductible, allow for more flexible withdraws, which may appeal to small business owners.

I recommend: Establish a traditional IRA or Roth IRA with a company like Am Check or Principle.com.