We do not recommend 401k plans for any small businesses. The administrative time and cost is not worth it. And if you ever decide to terminate the plan, the hassle and costs are ridiculous.
Instead, go with a Simple IRA with an employer match. No IRS Form 5500 is needed! Employees typically pay a fee on all contributions but that should be more than offset by the Employer Match.
KISS – keep it simple stupid!
12/16/2019
By: Gary Grottke, CPA, Quality Back Office LLC
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