Critical 401(k) Deadline Looms For Small BusinessesStuart Robertson, 09.17.09 Entrepreneurs can reap a tax benefit by setting up a Safe Harbor 401(k)--if they act quickly. Small businesses looking for shelter from the tax man might want to consider setting up a Safe Harbor 401(k) plan. But they have to move fast.
A Safe Harbor 401(k) enables small-business owners to make the maximum contribution of $16,500 in the current tax year without the additional administrative hassles that come in the form of "non-discrimination testing" by the IRS. Safe Harbor 401(k) regulations ensure that plans serve all employees, not just owners and highly paid lieutenants. To qualify, owners have to match employee contributions in accordance with the safe harbor provisions. And they have to set up their plans before the government-mandated Oct. 1 deadline. Read the entire article here
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