Home > In the News
> The Business of Saving
The Business of Savings
The Small Business Owner Dilemma: 401(k) or IRA?
Many owners with less than 15 employees debate whether to get an individual
IRA for themselves or a 401(k) for their entire business. When presented with
the differences, most owners see how 401(k) advantages can make it a clear winner:
|2009 Contribution Limit
|Age 50+ Catch-up Amount
|Roth Income Limit
||Yes, loan to self
401(k) plans make it easy to save automatically through payroll deductions
and enable optional profit sharing not available with an individual IRA. More
important are the additional tax credits and deductions for 401(k) plans that
can more than offset the cost of a plan.
our overview for more details on how a 401(k) can help.