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401(k)s  for Business Owners


The benefits are you can put away up to $18,000 a year for yourself in a tax protected account plus you can defer from taxes 20-25% of your wages as a profit share.


The costs are you need to be prepared to pay 2.5% to 3.5% of your payroll into matching contributions for yourself and your employees.


The startup costs for the plan are $500 to get the plan document and to get the process on board with a plan administrator.  Of this $500, you can deduct $250 from your taxes if you have at least one non highly compensated employee join your plan.


The business will have very few ongoing costs to administer the plan as the costs are paid by the participants in the plan. 



The reason you need an investment advisor:

  • Once you decide to have a 401k plan an investment advisor may help you decide which structure is best for you.

  • They work with you to decide what investment options work best for your goals

  • The investment advisor will give investment advice to your employees so that you don’t have to take on that responsibility

  • The investment advisor will help set you up with a TPA so that they can help with the administrative work that needs to be done.



  • Went to Stanford and UC Berkeley School of Law

  • 9 years experience in the investment industry

  • Conducted the education sessions on 401k on behalf of Merrill lynch

  • Advised plan participants on investment options

  • Regularly attend training on ERISA (the laws that govern retirement plans) so I can help you understand what some of your plan obligations are as a plan sponsor.

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