Research Firm ORC International conducted an online survey of small business owners on behalf of Fidelity. ORC surveyed 638 small business owners with fewer than 100 employees. The survey results indicated that many small business owners do not have a retirement plan suited to their needs. Many owners do not even fully understand the benefits of the plans they currently have. Half of the businesses who use a self-employed 401(k) did not know the maximum annual employer contribution allowed for the plan. Sixty percent of those with simple-IRAs did not know that employer tax filing is not required, and over half of those using an SEP-IRA were not aware that the plan is only funded by employer contributions.
Other business owners are concerned with the costs of a retirement savings plan. About 100 small business owners indicated that they currently do not have a retirement savings plan. Thirty-four of those 100 businesses cited cost as their reason for not having a retirement savings plan.
See Many Small Business Owners Not Up to Speed on Retirement Plans, Financial Advisor, Feb. 22, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
