In my opinion, the best retirement plan for restaurant owners is their business and the real estate the business sits on.

There are many tax benefits of owning a restaurant. You can sell it at an opportune time, you can pass it on to heirs and, if you own the real estate, it will at least hold value, if not appreciate over the years.

But putting all that aside, some restaurant owners prefer to also have a tax-advantaged retirement fund as an additional savings.

Certain tax-advantaged retirement accounts must include your employees. In all my years at all my clients, I have yet to see an employee SEP IRA, a SIMPLE IRA, a defined benefit, or defined contribution profit sharing plan that included employees work well. The employees don’t value it or can’t contribute. There are administrative costs, top-heavy limits, and procedures that become onerous and costly over time.

You can always set up an individual IRA or a Roth IRA as long as you have earned income and you or your spouse are not covered by an employer retirement plan. The maximum contribution is $6,000 ($7,000 if over 50) and both spouses can contribute.

You can establish a self-employed SEP IRA and contribute 20% of your self-employment income up to a maximum of $61,000 per year. The paperwork and yearly maintenance for this type of plan is minimal.

Kallas reminds all who read this that you should have expert professional advice before establishing any retirement plan. Discussion of your goals and options is critical.