Setting up 401k for small company that doesn't have one?

Factual Questions
1

I work for a small real estate investment firm. The company doesn’t offer benefits or 401k.

I would realize significant tax benefits if we had a 401k plan. I’m starting to research the costs associated with putting one in place. Does anyone have any idea of how much cost is associated with setting up and maintaining a 401k plan on a really small scale (2 employees)?

I think that if I could approach my boss with all of the information, and that the effort/cost on his part was essentially nothing, he would agree to it.

2

You might want to look up a SIMPLE 401K because those are designed for small businesses. There is a lot of good info on the web if you google that term. Is there any reason you want a 401K instead of just setting up personal regular or ROTH IRA’s?

3

I admit to knowing nothing about retirement plans, as I’m just now at the age of paying attention to that stuff.

My CPA said that there would be significant tax benefits and strategies to using a 401k plan, but perhaps he was refering to one in which employers match to a certain point.

Assuming no matching is done by my company . . . would the IRA’s offer the same tax benefits?

4

I own and run a small business with about a dozen employees. Look into a simple IRA. The company can only match 3% (more with a 401K plan) but there are zero costs to set up and run.

A 401K plan will have a yearly cost associated with it.

Firms like Schwab will help you out and you can put the money in anything you want - you are not necessarily limited to a few mutual funds.