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The Business of Savings
Top 5 ways a 401(k) helps small businesses
A 401(k) plan offers any size business, whether you are self-employed or have 50,000 employees, one of the most powerful ways to save tax-deferred. And that’s just the beginning.
It’s a benefit that offers great flexibility and is typically a fraction of the cost of other benefits such as healthcare. Here are 5 things you need to know as you consider what’s right for your business:
- 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 can be very affordable thanks to online technologies and providers like us focused on helping every kind and size of business have access to a plan.
- 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 your retirement savings in an emergency, you can do so with a penalty-free 401(k) plan loan (up to $50K).
Now is great time to get started so you are in position to make the most of your program.