"Many small-business owners believe that their businesses will furnish a comfortable retirement for them. As golden years approach, they anticipate selling their nest egg and living off the proceeds.

This may account for the fact that retirement plans are severely underutilized by business owners. The Small Business Administration's Office of Advocacy reported that fewer than 2% of business owners had a Keogh (self-employed profit-sharing) plan, only 18% participated in a 401(k) plan, and more than nine million self-employed individuals do not have any retirement plan coverage." See the full Wall Street Journal article at //ow.ly/2nbWc.

We understand why you might be reluctant to put a retirement plan in place for your employees. Retirement plans can be expensive, difficult to administer, and a fiduciary risk if not managed properly. But for all the valid reasons you’ve hesitated, there are just as many compelling reasons to institute a 401(k) plan for your employees.

• A well-designed 401(k) plan can help attract and keep talented employees.
• It allows participants to decide how much to contribute to their accounts on a before-tax basis.
• Employers are entitled to a tax deduction for their contributions to employees’ accounts.
• A 401(k) plan can benefit both rank-and-file employees and owner/managers.
• Money contributed can grow through investments in stocks, mutual funds, money market funds, savings accounts, and other investment vehicles.
• Contributions and earnings generally are not taxed by the Federal or State governments until they are distributed.
• A 401(k) plan may allow participants to take their benefits with them when they leave the company, easing administrative burdens.

Remember to look for low cost, open architecture, and no-load plans.