Around this time of year, independent community pharmacy owners and small business owners alike start evaluating their retirement plan. Wait... What? You don't do this? Well don't worry, you are not alone. In fact, you are in the majority. The first sentence should read, "This is the time of year for business owners to start evaluating their retirement plan."
Working with independent community pharmacy owners, we see one type of retirement plan that is very popular, the SIMPLE IRA. Its all in the name, simple to start and simple to maintain. What pharmacy owners have found, however, is that when using a SIMPLE IRA, even when maxing out contributions, saving enough money to reach their retirement goals is not likely. For that reason, many pharmacy owners have now started looking into moving to a 401(k).
The following is a simplified rundown of what you need to know about switching from a SIMPLE IRA to a 401(k).