Business owners should rethink what they "know" about sponsoring retirement plans, says the founder of a firm that administers 401(k)s for small companies.
It’s the last week of the year, and if your small business does not already have an employee retirement plan in place chances are good you’re thinking about it. Chances are also pretty good that you think it’s more difficult, and more expensive, to get started than it really is.
Bloomberg Businessweek ran an article earlier this month outlining some of the options, with helpful advice. Nearly three-quarters of small employers do not sponsor retirement plans for their employees, perhaps because of outdated negative notions about their costs and complexity.
If you are a small business owner, now may be the right time to revisit the concept of employee retirement plans. There are several options including Payroll Deduction IRAs, SEPs, SIMPLE IRA Plans, and 401(k)s. The options may be more attractive than you think once you do some investigating.
Reference: Bloomberg Businessweek (December 6, 2011) “Establishing an Employee Retirement Plan”