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The Business of Savings
5 big reasons to start a 401(k) plan this year
Now as 2009 draws to a close and a brutal recession appears to be behind us, “saving” has likely never been so cool or needed in our society. Right now is the time to offer yourself and your business one of the most powerful, if not the most powerful, way to save tax-deferred. That of course is a 401(k) plan.
Yes, we may be a little biased as this is what we do to help people save, but please do consider our top 5 reasons to start a 401(k) plan now and check it off your resolution list:
- You can protect up to $49,000 a year in a 401(k) plan tax-deferred ($54,500 if over 50) -- that’s a lot of mullah.
- You can put up to $16,500 ($22,000 if over 50) into a Roth 401(k) without any limits based on your income (unlike a Roth IRA).
- The price for 401(k) plans for any size office are very affordable thanks to online technologies.
- The business and personal tax benefits can outweigh the actual administrative costs of the plan --- that’s a good thing.
- If you need access to up to $50K of these funds in an emergency, a 401(k) plan loan is an option you can consider.
Cheers to a prosperous 2010.