Only 14% of employers with fewer than 100 employees offer a 401k plan. That’s because 401k plans generally are expensive and require considerable paperwork and other maintenance. That’s especially true for smaller 401k plans — because they hold fewer assets, they generate less trading fees and have less negotiating power, which results in higher set-up, maintenance, and other fees.
But things may be improving for small businesses. According to today’s New York Times, many small businesses are finding simpler and less expensive 401k options for their companies. Several new financial companies are being created to cater to the small business 401k market, and several other longtime players are now focusing on it.
To read more about 401k options for small business, you can find the New York Times article here.