Chapter 20
Choosing a Plan for Your Business
IN THIS CHAPTER
Finding the plan for you
Looking at examples
Getting rewarded for your plan
Making a change when you need to
Running a retirement plan is a significant responsibility for any employer. A company isn’t required to offer a plan, but if it does, it must comply with the applicable laws and regulations — whether the plan covers only a couple of employees or more than 100,000.
In this chapter, I compare plan options from various types of 401(k)s to various types of IRAs. I also talk about earning credit for setting up a plan.
You’re not alone if the first plan you choose isn’t the plan you really need. I walk you through the process of switching plans, which isn’t pleasant but can be for the best.
Selecting a Plan That’s Right for You
Most small businesses want one of the plans that are primarily funded by employee contributions. Each plan has pros and cons. Table 20-1 summarizes the main features of the different plans funded primarily by employee contributions.
TABLE 20-1 401(k) & IRA Options
Feature/Requirement |
Regular ... |
|---|
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