Efficient Management of Your SBO 401k

I run a business where I and my wife are the only employees with the eligibility to participate in a retirement plan. What kind of plan should I choose and how can I manage it efficiently with my time constraints? – Jonathan Lodge, New York

Businesses where the owner and spouse make the only eligible employees for a retirement plan can opt for SBO-401k plans. This is a government registered savings plan that helps you set aside a portion of your earnings for future needs. This plan is tax deferred, which means that the contributions that you make into the plan are not taxed at the time when you make them. At withdrawal time, taxes do apply on the amounts that you take out from the plan. The SBO-401k plan is especially designed for small businesses with limited employees.

Your SBO-401k plan can be self directed, that is, you set up and manage it on your own; or it can be managed by a third party institution. There are several financial institutions that set up and manage 401ks on behalf of small businesses. Your bank may be a good first stop for you, if you want to have your 401k plan professionally managed. Other than banks; mutual funds, insurance companies and others also carry out these 401k related activities.

However, for a business like yours where only you and your spouse are the eligible contributors, it is quite unnecessary for you to opt for professional management. Simply choose an online 401K setup and management service like 401k Easy Online (http://401k-easy-online.com/) and you will find that making, tracking and managing contributions takes just a few minutes on a monthly basis.

Many small business owners are increasingly opting for such deals because of the complete control they get over their 401k plan. Such 401k suites make it easy for you to track your plan right from your desk at office. You can contribute to and manage your plan efficiently despite any time constraints that you may have.

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.

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