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Full Version: Voluntary Pre-tax employee contribution plan
BenefitsLink Message Boards > Retirement Plans > SEP, SARSEP and SIMPLE Plans
Jhagan
Which type of plan do you use if the employer wants to offer only voluntary pre-tax employee contributions - no employer contributions. Very small employer.
Gary Lesser
A traditional 401(k) plan could be used if NOT top heavy. If the employer would contribute 3 percent (in some years 2 percent) then a SIMPLE might work well. In fact the cost of maintaining the 401(k) plan might exceeed the cost of employer contributions under the SIMPLE!!
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