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Small Businesses Should Be Looking At Retirement Plans

Written by Jenna Weiner
Published: 3/2/2011

Retirement plans are not out of reach for small businesses, especially 401(k) plans.

Small business owners have a lot on their minds. As the economy continues to emerge, albeit slowly, from the recession, news for entrepreneurs has been increasingly focused on hiring, healthcare and consumer spending trends.

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However, retirement plans may not be center stage in entrepreneurs' minds. In fact, according to a blog post in Forbes by Stuart Robertson, only 15 to 20 percent of small businesses with fewer than 50 employees have a retirement plan.

As a result, Robertson believes it's time to clear up a few myths that bar owners from investing in 401(k) plans. First of all, no business is too small for this type of program. Even self-employed individuals are eligible for an Individual or Solo 401(k).

Furthermore, expense should not be a deterrent. The government offers a number of tax credits and deductions that can significantly improve an owner's tax situation.

For example, ShareBuilder 401k, a subsidiary of ING Direct, told MSN Business On Main that a company with two to 15 employees should pay no more than $1,200 a year for a 401(k) plan.

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