Simple plan alternativeQuestion Is the Simple Plan a suitable alternative to a 401(k) plan?
Answer Yes, a Simple plan can be an alternative for small businesses, which can be set up as a SIMPLE-IRA or a SIMPLE 401(k). These plans have very modest employer contributions. A SIMPLE IRA relieves the company of having to make annual reports on the plan to the Department of Labor.
For details about retirement plan options, see IRS Publication 560, Retirement Plans for Small Business, at www.irs.gov. Also review your options with a tax adviser to determine which one works best for your situation. Always seek counsel from a qualified expert to help you with your choices. Search again for 401(k) plans. 
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
Related Categories: Accounting, Finance, Taxes, Financial Planning, Human Resources, Retirement And Exit Strategies
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