31 to 60 percent . Some owners prefer contributing to the retirement of the outside group rather than sending the money to the IRS, which is what they would have to do if they didn't have a plan. 61 percent or more . This is most typical of a small business. Retirement plans in businesses of this sort are designed primarily to maximize owner wealth.
Amounts paid for the other employees are fairly small by comparison.
We asked you two questions about the amounts you can afford to put into your plan once you start them. One had to do with the maximum likely contribution and the other had to do with the minimum. A profit-sharing plan is another possibility. Profit-sharing plans are particularly appropriate if you expect to have some lean years. Both are flexible so that you won't be strapped in lean years.