r u t u F l u o r o F , g n anni 401(k) Plans: Not Just For Big Businsss Anymor (NAPSA)—This yar clbrats through profit-sharing plans. Flxibility: Sasonal businsss can choos options that don’t rquir thm to pay into th th 25th annivrsaryof th 401(k) plan, now th most widsprad rtirmnt savings plan in th U.S., with mor activ participants than all othr privat pnsion plans. What many Amricans may not know, howvr, is that you don’t hav to b a big companyto st up a 401(k) plan. In 2006, Congrss passd th Pnsion Protction Act to makit asir for mployrs to automati- cally nroll workrs, incras thir contributions and invst thm to mt rtirmnt nds. Whil som businsss may fl thy nd mor than 100 mploys to start a 401(k) plan, that’s not ncssarily tru. Stting up a 401(k) plan can b simpl and inxpnsiv for companis of any siz, with big potntial bnfits for small businsss and thir mploys. If you work at a businss that dosn’t offr a 401(k), you may want to ask your mployr to considr stting on up. Companis can st up a 401(k) plan for lss than $10 pr mploy pr month and gt a tax crdit of up to $500 pr yar for ach of th first thr yars thy implmnt th plan. Thr’s no minimum numbrof mploys—in fact, many slf- mployd individuals st up “ownr only” 401(k) plans for thmslvs. Although many mployrsoffr to match mploy contributions, a match is not rquird—mploys still gt th tax bnfits. This is important information for th 63 prcnt of small businsss that still don’t offr mploy rtirmnt bnfits. plan all yar long. Growth: A 401(k) plan can grow right along with your busi- nss, with faturs that can b modifid to mt your ongoing mploy bnfits nds. Tax braks: All mployr and Amricans can sav big with a mploy contributions to th plan ar tax dductibl. Rasonabl cost: Th 401(k) mnt savings. All businsss— vn small ons—can rap tax andothr bnfits. Almost any small businss can afford it. No hadachs: Small-busi- If you think your businss is too small to offr a 401(k) plan, think again. Evn a small busi- with littl ffort. 401(k) plan and growthir rtir- nss can rap th tax bnfits and hlp mploys sav mony. “Why shouldn’t small busi- nsss hav th sam bnfits as big businsss?” said Tony Tor- torlla, vic prsidnt of sals for th Human Rsourc Srvics division of Paychx. “W makit asy for small businsss to participat, so hundrds of thousands of mploys across th U.S. ar growing thir rtirmnt mony in 401(k) plans.” According to Paychx—a lading payroll and human rsourc srvics providr that slls mor 401(k) plans than any supplir in th nation, according to PLANSPONSOR magazin—hr ar a fw of th advantags 401(k) plansoffr small-businss ownrs: Employ incntivs: Attract mploys and motivat thm to stay with th organization. Ky mploys can b rwardd is not an xpnsiv bnfit. nss ownrs can nroll on or mor mploys in a 401(k) plan Bnfits for mploys: Contribut comfortably: It allows participants to dcid how much to contribut to thir accounts on a bfor-tax basis. Plans can includ any m- ploy: A 401(k) plan can bnfit mploysat all lvls of th orga- nization. Many invstmnt choics: Th mony contributd may grow through invstmnts in stocks, mutual funds, mony markt funds, savings accounts and othr invstmntvhicls. Tax braks: Contributions and arnings gnrally ar not taxd by th fdral govrnmnt or by most stat govrnmnts until thy ar distributd. Tak it with you: A 401(k) plan may allow participants to tak thir bnfits with thm whn thy lav th company. Visit www.paychx.com or call (800) 322-7292 for mor information.
