In today’s video blog post, you’ll learn 3 important reasons your small business needs a 401(k). These reasons all revolve around benefits received by the owner(s), the business itself, and the employees. If you’ve been thinking about starting a 401(k) plan or even if you already have one, you’ll find benefit in watching this short video!
Company Retirement Plans
Whether you are looking to add a 401k plan for your employees or you already have one in place, there are some important things to consider. In today’s blog post, you will learn about 4 questions that you need to answer when choosing a 401k plan for the first time or managing an existing one. Specifically, these questions revolve around your legal responsibility as a business owner, the fees within the 401k plan, the investment strategy being implemented, and the ease of use for employees.
If you have publicly-traded company stock in a 401k plan then you may have heard of a strategy called net unrealized appreciation (NUA). The basic idea is that once you are eligible, you have an opportunity to rollover the employer stock in a very specific way and possibly save a tremendous amount of money in taxes. However, the strategy is not always as beneficial as it appears. In many cases, you may be better off by not engaging in NUA at all. Even if that means you will pay more in taxes. Read more “I’ve Been Published: Handling Company Stock in a 401k”
As a small business owner, perhaps you’ve been contemplating the best type of retirement plan to implement at your company. When looking to set up a company retirement plan for the first time, the amount of choices can completely overwhelm you. In fact, there are over 20 different types of plans that you could potentially implement. And with that amount of choices you will likely be so overwhelmed that you will take no action at all. Read more “Simple IRA vs 401k – Which Should A Company Implement?”
We recently worked with a small business to help them identify and understand their company sponsored 401k fees.
The 401k plan was actually an insurance product that was put into place prior to working with us. And in case you don’t know, insurance products typically involve lengthy, confusing contracts. In fact there were 170 pages within the contract. It took us quite a while to determine what the fees were and even then we weren’t totally sure we knew all the fees.
There was a lot of language within the contract that said “there may be fees for …….” or “certain charges may be deducted from plan assets”. Another part of the contract said “Program and Administrative Charges will never exceed 2.00% per year”. What??? This tells us nothing about what the fees are; just that they are on some kind of sliding scale. Do you see all the vagueness here? Read more “Are Your Company 401k Fees Too High?”
If you can relate to any of the following scenarios then this blog post is for you:
- You are a one (or multiple) owner company with no employees.
- You are a husband and wife owned company with no employees.
- You are a 1099 contractor with no employees.
Over the past few weeks I have been discussing whether or not small business owners should implement a company retirement plan such as a 401k. Read more “SEP IRA vs Solo 401k”
As a business owner you have a tremendous opportunity that your employees do not have. You have the ability to set up a 401k plan.
Employees don’t have a say in what type of retirement plan, if any, their company offers.
But for you, as a small business owner, you get to choose whether or not to implement a 401k plan (or some other type of plan). And you get to choose how to set this plan up which can dramatically impact the amount of money you are able to save and shelter from taxes.
In my last blog, Should You Set Up A Small Business 401k, I discussed how a business owner can use a retirement plan, such as a 401k, to fund their personal retirement.
But today, before I discuss the benefits of setting up a 401k, I want to address a thought that many small business owners have: Read more “4 Secret Benefits of Setting Up a 401k”
401k plans are a great tool for small business owners to achieve their retirement goals. But let’s not put the cart before the horse.
The first question to ask is:
SHOULD YOU EVEN SET UP A SMALL BUSINESS 401K?
The answer to this question is “it depends”.
Every small business owner has different goals. Maybe their goal is to provide a benefit for their employees. Maybe it’s to provide themselves with a vehicle to fund their personal retirement. Maybe it’s to minimize taxation. Or maybe it’s a combination of all three.
Other goals revolve around when a business owner will retire (if at all), their desired standard of living, and how much they need to save (if any at all).
It’s these types of issues that need to be addressed in order to determine if you should set up a 401k. We’ll discuss more about this in a moment. Read more “Should You Set Up A Small Business 401k?”
A while back, I wrote a blog titled Retirement Tips for Small Business Owners. One aspect of that blog revolved around business owners depending on their business to provide for their future retirement.
I discussed that any number of things could render your business obsolete and that small business owners need to have a back up plan.
Today, I want to share a back up plan with you. Read more “Should You Invest Outside Your Business?”
As a small business owner it is logical to think that your business will provide for you in retirement. While that may be the case, it’s not a good idea to put all your eggs in that one possibility.