Many small business owners don't understand their retirement plans
By Lauren McNitt
ProWEB Wire (Industry News)
Many small businesses may not have optimal retirement plans for their needs, according to a new Fidelity survey.
The survey found small business owners lack knowledge about the structure and cost of their retirement plans. When asked a series of questions about their retirement plans, just 66 percent responded correctly.
- Half who use a self-employed 401(k) did not know the maximum annual employer contribution allowed for this plan;
- Nearly two-thirds with SIMPLE-IRAs were not aware that employer tax filing is not required;
- Fifty-five percent using a SEP-IRA did not know that the plan is funded solely by employer contributions.