Can a Small Business have a 401K?
Small Business owners are busy… very busy… So busy that they sometimes forget about themselves. As a business owner, you are able to save for retirement by way of a 401K or a SEP 401K. And wouldn’t it be great to offer your employees this benefit?
Not all plans charge for a 401K plan, if you’re willing to do some of the work yourself. A Bookkeeper can help you keep track of your deductions and remind you when to send the monies.
Consult your CPA to see if this is an option.
2018 Defined Contribution Plan Limits
| Defined Contribution Plan Limits | 2018 | 2017 |
|---|---|---|
| Maximum employee elective deferral | $18,500 | $18,000 |
| Employee catch-up contribution (if age 50 or older by year-end) | $6,000 | $6,000 |
| Defined contribution maximum limit, all sources | $55,000 | $54,000 |