The 401khelpcenter.com and Pensiononline.com have partnered to make available a freemaximum contribution analysis tool. The free tool, found at http://www.pensiononline.com/401khelpcenter/ , is being offered to small businesses that are now contemplating implementing a Solo (k) plan over various other types of retirement plans.
This retirement plan is now an option for small businesses following the passing of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which made a number of constructive changes to existing laws governing 401(k) plans and allowing them to enter the small business market space.
Because the Individual (k) plan is a tax-qualified, 401(k)-based business retirement plan, it provides business owners with all the benefits associated with traditional qualified retirement plans such as tax-deductible contributions and tax-sheltered growth. In addition, thanks to pension reform legislation, the new Individual (k) plan affords many business owners several compelling advantages when compared to traditional business retirement plans, including:
- higher contribution limits
- funding flexibility
- flexible distribution options, including hardship and in-service withdrawals, and
- access to tax-free loans.
You can fInd out more about those advantages in Solo Flight from the December issue of PLAN SPONSOR .