201 GREAT IDEAS for Your SMALL BUSINESS, Third Edition

GREAT 45 IDEA: Set Up a Retirement Plan

Paperwork and complex tax filings discourage many smaller companies from offering even minimal retirement benefits for workers. But no matter how small your company is, you and your employees should be saving for the future.

Many small companies set up simple 401(k) plans and match employee contributions. Because so many people change jobs (the average worker may have 12 jobs in a lifetime), 401(k) plans make sense.

The plans, named after the tax code provision, are easy to set up. Most companies try to provide some sort of matching contribution. It varies from 1 or 2 percent to much higher. Financial planners encourage clients to set aside and invest the maximum amount possible every year to create a robust ...