Low fee 401k for plumbers
Plumbers seeking to reduce 401k administration fees for their small business have options available. Running a business is never easy, and for those in the plumbing industry, wearing multiple hats can definitely side track you from focusing on what to do for yourself for retirement and for your company.
Most businesses we help run towards the easiest solution to set up a 401k plan through a payroll company which is not necessarily the most cost effective solution so small businesses. When taking a look at a payroll company’s invoice and 408 (b) (2) disclosures, you’ll see what we’re talking about and why we focus on 401k administration fees small business solutions save companies thousands each year. As you read on, employers and employees can read more on about 401k plans.
Requirements for employees to become eligible to enroll:
- The participant must be 21 years or older.
- Must be a full-time employee that has completed at least one year of service, which is the same as 1,000 hours of labor.
Best 401k plan for small business
One of the best 401k plans for small business is to know what your options are. As an individual business owners would be looking into a low cost 401k plan for plumbers would be a Solo 401k.
Other companies who may have a larger staff or group may consider a Safe Harbor 401k or Traditional 401k plan which would be best 401k plan for their small business.
Self-Employed or Solo 401k plan:
- The main targets of this plan are small business owners that have no full time employees. It brings full coverage on both the owner and spouse, making it unique in its kind. This plan brings equal tax benefits as a Traditional 401K, making it one of the most popular plans for self-employed plumbers.
Two other options for a low cost 401k for plumbers with a small, mid or large size company:
- Traditional 401K: a company’s retirement plan provided to employees. Employers are responsible to make contributions to employees, but it also allows the workers to contribute. Individuals participating in the plan pay taxes at withdrawal.
- Roth 401K: is a combination of Roth IRA and the Traditional 401k. When arriving to retirement age, withdrawals become tax-free. Participants must pay taxes once they start withdrawing from the account.
Low fee Retirement Plans for Plumbing Companies – Small, Mid and Large Businesses
Today, financial companies are making enrolling as easy as possible. Enrollment for small business, self-employed, mid, or large business owned by plumbers, has become much easier. Since, online enrollment has provided less of hassle to interested individuals.
Financial adviser’s best recommendation is to set up a financial strategy three months before end of the year.
A business, by understanding the rules and regulations can prevent future endeavors or failures. Contributions, benefits and requirements will be known by the employer and employee, this way the plan goals can be achieved.