Comments on: Hidden Small Business Pension Plan Costs https://evergreensmallbusiness.com/hidden-small-business-pension-plan-costs/ Actionable Insights from Small Business CPAs Wed, 21 Feb 2018 14:22:23 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Steve https://evergreensmallbusiness.com/hidden-small-business-pension-plan-costs/#comment-6048 Wed, 21 Feb 2018 14:22:23 +0000 http://evergreensmallbusiness.com/?p=3793#comment-6048 In reply to Solo Prosperity.

The thing to remember about a 401(k) and its larger profit sharing match is this: Once you have other employees, you provide the match to them too.

This reality means, usually, you start with a SEP… and then maybe move to a Simple-IRA if you have one or two other employees or maybe move to a 401(k) plan if you have enough other employees that you can in effect amortize the larger administrative cost of a 401(k) over more than just one employee.

]]> By: Solo Prosperity https://evergreensmallbusiness.com/hidden-small-business-pension-plan-costs/#comment-6045 Tue, 20 Feb 2018 05:47:12 +0000 http://evergreensmallbusiness.com/?p=3793#comment-6045 Sorry to comment on a 2+ year-old blog post, but when you looked at the cost of 401k plans, I see that you mentioned the $18,000.00 cap. Did you run any cost/benefit analysis for the potentially larger “employer” contributions allowed in the 401k structure versus the SIMPLE structure? I love the Individual 401k, but this article has me wondering about plan decisions when there is a good chance there might be 1-2 non-spouse employee’s down the road. Thanks.

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