Should I Set Up A Traditional 401k For My Business?
Business owners who are considering a retirement plan for their business have many options. While a traditional 401(k) is a well-known choice among business owners, there are many cases where other retirement plan options may be better suited for the business and the owner.
To help make this analysis easier, we have created the “Should I Set Up A Traditional 401(k) For My Business?” flowchart. It addresses some of the most common issues that arise if you are looking to set up a retirement plan for your business. This flowchart considers:
Which plans may be better when there are no employees
When a defined benefit pension plan could be set up
Options to review when the goal is to save more than the annual total contribution limit
Maximum employee contribution amounts for plans
Which plans have mandatory matching contribution requirements
Minimum employer matching contribution amounts
Plans that offer more flexibility
Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small- business owners. Our disclosure can be found here. The views, opinion, information and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.