401k Limits and Why They're Important
For those of you who own or work in a small business, one of the most overlooked benefits is a retirement plan. One of the reasons this is overlooked is due to misconceptions about cost, implementation, and a general lack of understanding on how they work and their limits.
The NY Times has recently done a great job in clearing up the confusion. The article explains IRA and 401(k) limits and how important retirement plans are for business owners :
"Owners can contribute to individual retirement accounts or to a Roth I.R.A., but the contribution limit for these plans is just $5,500 a year ($6,500 for anyone 50 and older). That is one third the maximum allowed for a 401(k) plan."
As you may know, Highland Financial Advisors designs and implements small business retirement plans, including 401(k)s. We have done much of the leg-work often borne by the business owner. We have spent a lot of time researching the many companies that offer plans and have found very low-cost plans offering well-managed funds to help you and your employees fund their retirement.
If you would like a review of your current plan, or would like for us to discuss the best plan for you, please give us a call. See our Contact Us page.
Click here to read the NY Times article.