If you have been procrastinating setting up a retirement account and think that your firm is just too small to reap the best possible benefits, it’s an ideal time to make a move. Small employers may think that 401(k) plans are just for large companies, but a 401(k) plan can be established for as few as two employees.
To get this in place for next year, a 401(k) document must be drafted and signed before the end of 2013 and the employees would then begin making contributions with their first paychecks in 2014.
If the 401(k) plan also includes a profit-sharing feature, the employer can STILL make a contribution to it for 2013 by the due date for the tax return or August 2014.