Changes coming to 401K rules
| May 06, 2009
It may soon be mandatory that you offer all employees a 401K plan or enroll them in a direct deposit individual retirement account. That’s if the new administration and leading democrats and labor groups have their way.
On the one hand, good construction companies should be offering some sort of retirement plans. On the other hand, small and start up companies, especially those that would like to hire just one or two people, will find it hard to offer this benefit. The average construction company in the U.S. has just nine employees, and some two million construction firms have no paid employees. Don’t expect these guys to be growing or hiring if the federal government makes it too difficult to do so.
If job creation were really a priority with the new administration one would think they’d be more favorably inclined toward entrepreneurs. Sadly, as this article makes evident, the needs of entrepreneurs have been ignored in the era of hope and change…in favor or mega banks, bankrupt car companies and government jobs.