The US Department of Labor’s Employee Benefits Security Administration (EBSA) and the Internal Revenue Service (IRS) have released “401(k) Plans for Small Businesses,” a new booklet issued as part of an ongoing effort to provide compliance assistance to small employers on retirement plan issues. The booklet provides an overview of this retirement savings option and what is involved in starting and operating a 401(k), according to a news release.
Described in the booklet are the three types of 401(k) plan designs currently available – traditional, safe harbor or SIMPLE 401(k) plans – and discusses the features and advantages of each. Additionally, the booklet highlights choices small business owners have in setting up a 401(k) plan, including the type of plan to offer.
“It is crucial that we encourage small businesses to provide these valuable benefits to workers,” Assistant Secretary of Labor Ann Combs, said in a news release. “This publication draws a clear road map for employers who want to provide a plan, but need some friendly directions along the way.”
The new guide, “401(k) Plans for Small Businesses,” is available from EBSA’s toll-free number at (866) 444-EBSA and can be viewed on both the DOL and IRS Web sites at http://www.dol.gov/ebsa/publications/401kplans.html and http://www.irs.gov/retirement/article/0,,id=120298,00.html .