SEP IRA and 401k plans for small businesses -- small business SEP plans V. small business 401k plansSEP IRA for small businesses and 401k plans for small businesses and comparison of small SEP IRA plans versus small 401k plans. Topics:
- Small business 401k plans V. small business SEP IRA plans: 401k is the better option
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401(k) plans have grown dramatically since their institution by Congress in 1978. One estimate by CHALK 401(k) Advisory Board, Inc., places the number of qualified 401(k) plans in 1997 (the last year surveyed) at 225,000 and the number of participants in those plans at approximately 28 million; the Investment Company Institute (ICI) estimates 36.7 million participants in 1998. New plans continue to grow in number at an annual rate of more than 14% (U.S. Department of Labor). |
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