Setting Up A 401(K) Plan For A Small Biz
Newsday:
Small-business owners can easily get so buried in the daily minutiae of running a business and trying to survive that they often don’t give much thought to retirement planning for themselves or their employees.
In fact, many entrepreneurs may even think they’re just too small to offer a 401(k) retirement plan, which allows participants to set aside tax-deferred income for retirement.
But the reality is that any size company can set up a 401(k). With a multitude of options available today, it’s much easier for small businesses to institute a retirement plan for their company, experts say.
“The 401(k) concept is very flexible,” says David Wray, president of the Profit Sharing/401k Council of America, a Chicago-based nonprofit organization representing companies that sponsor 401(k) plans for their employees.
In fact, thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001, which made changes to the laws governing 401(k) plans, even solo entrepreneurs can now afford to have their own plan, according to Gene Fairbrother, lead business consultant for the National Association for the Self-Employed in Dallas. The law made it possible for self-employed individuals with no employees, and their spouses to take advantage of a solo 401(k), which is more affordable than a traditional 401(k) since it requires less administrative upkeep, he adds.
It also has the same maximum contribution limits as the traditional 401(k) (see 401kplanning.org/top-401k- planning-questions-and-answers/what-are-the-2009-401k-limits/). Carry on reading.
Also Read
- Prepare For A Possible Pandemic – RECOMMENDATIONS FOR BUSINESSES QSR magazine: * Check that existing business continuity contingency...
- Women Entrepreneurs And Maternity Leave Current Mom: So often, women become entrepreneurs for the...
- How Small Biz Owners Can Afford To Take A Vacation PRLog.Org: So in more difficult economic times, it stands...
