Choosing a One Man 401k Plan

I run a plumbing business where I am the owner- employee. I don’t employ any others as of now for my business. Can I set up a 401k plan for myself online? What should I look for in such a plan? Sidney B. Daniels, New York

Until as recently as the year 2002, it would not have been possible for you have a 401k account for your business unless you had more employees. But now you can definitely set up a one man 401k plan for yourself without needing multiple plan participants. This plan is the perfect one for small business owners who do not employ others. You can even have this plan if you employ just your spouse in your business.

The easiest way to set up a one man 401k plan is to go with a ready to use suite like http://small401k.com. There are a few points to consider before you decide on the 401k suite you want to sign up for. The most important point is that the suite should have a good choice of investments on offer. This will ensure that you can invest your 401 funds in avenues that give you the best returns with least risk.

The cost of the plan is another point to think about. Comparing DIY suites on different sites will tell you if the one you are looking to sign up for is really competitively priced. The suite should be easy to manage and administer so that you do not end up spending hours of your time every month keeping the account up to date. A good way to test out a 401k suite is to try a free demo. This hands on experience with the package is the best way for you evaluate if it is indeed the right one for you.

About Elliot Earl, Director, Pension Trade Association
Director, Pension Trade Association Founded in 1982, the Pension Trade Association [California Domestic Nonprofit Corporation #C1629080] is dedicated to helping workers save for their retirement through expanded coverage of 401k -type defined contribution pension plans.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: