Pension Pennies
Will the tax reform increase small business's appetite for savings plans?
By C.J. Prince •
Opinions expressed by Entrepreneur contributors are their own.
The sweeping $1.35 trillion tax bill President Bush signed intolaw includes measures designed to make retirement plans simpler forentrepreneurs to sponsor. The question is, Will the changes bringentrepreneurs flocking to the plans to help their employees?
The answer: not necessarily. Small-business owners, put off byprohibitive costs and complicated administrative tasks, havetraditionally been far less likely than CEOs of larger companies toset up retirement plans. Rep. Ben Cardin (D-MD), who co-sponsoredthe House pension reform bill, estimated that among companies withfewer than 100 employees, as many as 80 percent of workers have nopension or retirement plan (compared to just 25 percent for largecompanies).
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