Mark Your Calendar for 2009 401(k) Deadlines

There is an important deadline coming up for small business owners that want to save the maximum amount on taxes this year.

These plans, called safe harbor 401(k)s, must be setup by October 1st each year to qualify. Our 2009 deadline is September 21st to ensure your plan is setup in time to meet the requirement.

By simply providing a small match to your employees, you can setup a safe harbor plan for your business. The 401(k) safe harbor enables owners of businesses with employees to contribute the maximum amount (otherwise restrictions may apply) in the current tax year without the additional administrative hassles that come along with satisfying “discrimination testing” for retirement plans.

Other 401(k) plan deadlines roll around in December each year (assuming your fiscal year follows a calendar year). These plan types include individual 401(k) plans for the self-employed, non-safe harbor 401(k)s for businesses with employees, and profit-sharing only plans.

Our 2009 deadline for these options is December 21st.