mitchelt

Thank you for the tip. We will be an S-Corp, do you know if the Cash Bonus can be pre-tax and dumped directly into the 401(k) or would it just be taxed and then we can do whatever we want to do with it like put it in a Roth?

Lou...thank you for the information. I was leaning towards what you said, that it would not fly if we did this. I think I will just leave this one to the Plan Administrator/Management Firm we will eventually hire, let them figure it out and earn their fee!

I am going to soon be buying a small business and will offer a Safe Harbor 401(k) plan. My question has to do with the 3 owners (2 + myself). At the end of the year, let's say we are going to give ourselves a $50k bonus ea. (profit sharing), can we do this even though the rest of the 6 or so employees will not be receiving this bonus? Employees will be getting a merit based bonus, if they "earned" it. Thank you.

Thank you very much for the information...what you stated is my exact goal. I looked up the Simple IRA options and cost and it looks like it will work perfectly.

I currently work for my father in-laws company and we use an Investment Company to handle all of our 401K needs/accounts/investments. Currently the company is made up of 40+ employees because there are 2 companies. I am planning on purchasing the smaller side of the business and there will only be maybe 10 employees. I still want to continue the employer matching program, and at the same time reduce our annual costs associated with using our current Investment Consulting Company and costs associated with the Investment Bank we use. What is the easiest and least expensive way to do this...should I just have everyone sign up for their own account at one place like say Charles Schwab and setup a direct deposit? My goal is to still provide this benefit to the employees, save money and eliminate any liability that may come with the us suggesting a place for them to use (Charles Schwab). Any advice would be greatly appreciated. Thank you! Mitch