Study shows small-biz owners skipping 401(k) plans

GLENVIEW, Ill. – The majority of small-business owners do not offer a 401(k), and nearly half of them see no value in it, according to the 2016 SurePayroll Small Business Scorecard.
The study, conducted by online payroll service company SurePayroll, says 35 percent of participants didn’t offer the financial plan because “fees are too expensive,” and nearly a quarter of respondents say they didn’t know how to manage a 401(k), according to the report.
“There needs to be more education for small-business owners about the tax benefits and the long-term growth potential of investing in the 401(k) plan,” said Andy Roe, general manager of SurePayroll, in a statement. “The fees really are minimal when you consider the benefits to you and your employees. The plans available today make it very easy to manage, and your payroll provider can help guide you. It’s a growth opportunity for business owners.”
About 28 percent of respondents offer a 401(k) plan, and another 6 percent say they plan to add one soon, according to the report.

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  1. Our small business terminated the 401k plan and gave the equivalent of the fees and the match to the employees. That put an end to what had become an unacceptable administrative burden. We are replacing the plan with a Simple plan.