Many small business employers are reluctant to provide 401(k) plans for their employees because they don’t realize how easy it is to set up plans and maintain them. Indeed, the Small Business Administration found that a majority of employees working for small businesses didn’t even have access to an employer-sponsored plan. When you don’t offer a retirement plan, you could miss out on recruiting talented workers, and miss out on some of the associated tax benefits.
Before you decided that it is not possible for you to offer a 401(k) plan to your employees, consider that you might be falling prey to some misconceptions. Chad Parks is the CEO and founder of The Online 401(k), and he offers information on 4 common misconceptions associated with offering these retirement plans — and the truth about them: