We're finally at the point where we can increase our retirement fund contributions (thanks to paying off a massive business debt earlier this year), but I'm not sure what kinds of funds are best or even available to us. I will also talk to our CPA, but I don't think I know enough to ask intelligent questions yet.
DH and I own a small business with three additional employees (5 of us, total). I have a traditional IRA with Vanguard that holds my rollover from previous employment. I'm putting in as much as I can afford via weekly auto-deposits, which will max it out next year at $5.5k. Our next step is to open one for DH, also maxing at $5.5k. Or maybe a Roth would be better? In any case, $11k a year is clearly not enough, considering that we're in our mid-40s and really need to get it in gear.
What's the logical next step? My understanding is that SIMPLE and SEP plans require contributions to employees' plans as well, and while we'd like to do that eventually, we're not profitable enough to do it yet. Is there anything else we can set up for ourselves to allow more tax-advantaged investments, without also committing to employee matching/contributions? Or is there something I'm not understanding about SEP and SIMPLE plans that would make it a better choice?
Thanks in advance.
