Financial Service Providers Santa Fe NM
Santa Fe Capital Management
(505) 820-1177
Santa Fe, NM
How to Start a 401(k) For Your Business ? and Why It?s a Good Idea
You don’t have to be a large, profitable business with an equally large staff to start a 401(k). Recent changes in federal tax laws made sure of that, and there are now plans to cover the span of business models, from the owner-only startup to the global enterprise.
Do I need a 401(k) plan for my business?
A survey by Boston-based Fidelity Investments, one of the world’s largest providers of financial services, indicated that one out of four small business owners believe there isn’t a 401(k) plan to suit their company’s needs.
“This is a case where perception is not reality, because small businesses of any size can get a 401(k) plan today that’s cost-effective and easy to implement and administer,” says Edmund F. Murphy, executive vice president, Fidelity Institutional Retirement Services Company.
With the burden of retirement savings now falling on the employee, financial planners agree that the sooner you get started, the better. And with the Pension Protection Act of 2006 passed by Congress in summer 2006, there are benefits for small business owners to offer a 401(k).
How do I get started?
Most financial advisors say the sooner you start saving for retirement, the better. Len Ligotti, sales development manager for Chicago-based LaSalle Financial Services, says the same logic applies to a 401(k) plan.
Copyright 2009 StartupNation, LLC