It is a common misconception that 401K plans are only for large employers.Even if you have a small business, you still want to offer your employees a sound retirement savings plan that's also economical.
This plan has no monthly service fees or maintenance fees and no minimum amount to open an account.
Contributions are tax-deductible and earnings are tax-deferred.
In fact, CBS Moneywatch rated Employee Fiduciary as the Best Small Company 401K provider.
This company encourages employers to compare their 401K plans against their current provider’s plan, claiming low fees with the same investment choices as plans sponsored by the country's largest organizations.
Individuals who are self-employed or have an owner-only business can contribute to an individual 401K plan which offers many of the same benefits as the traditional 401K.
A great thing about the individual 401K plan is that you can direct how your contributions are invested.
The 401K plans offer flexible investment options from over 130 leading investment managers.
Three investment tiers are available for participants: basic sample line-up (for investors with little-to-no investment experience), standard sample line-up (for investors with an average level of investment experience), and advanced sample line-up (designed for participants with above-average investment experience).
There is a Vanguard investment fund available for nearly every investor, including more than 100 mutual funds (some of the most inexpensive in the industry), low-cost and diversified ETFs, and target date funds (these funds automatically adjust underlying investments as the retirement date approaches).
The target date funds are very cost effective and are designed to maximize retirement earnings.