3 ms·

Why doesn't the shop have a 401k? Doesn't the owner want to save for retirement?

• lotsofpulp 5y ago
  They cannot afford it. 401K have administration costs and you have to make it lucrative enough such that both employees participate to pass non discrimination testing, and lots of small businesses are just barely eking out an existence with owners taking little profit other than sweat equity.
  • mNovak 5y ago
    Been a while since I looked at safe harbor 401ks, but I think you just have to offer it, not force employees to join. And admin costs are going down; I think something like $50 +$8/per/mo on Guideline. Not nothing obviously, but can be recouped pretty quickly if you're maxing out even just employee contribution.