Only 16 percent of small businesses have a 401(k) retirement plan, according to a recent article in “U.S. News & World Report”. The article, which quotes a survey done by financial services firm ING Direct, defines a small business as one with fewer than 50 employees. However, the article points out that small businesses, even those with a single employee, can still have a 401(k) plan.

If you’re a small business and not sure what to look for in shopping for a 401(k) retirement plan, some “checklist” items include:

• Understand that there are different plans available – Depending on the number of employees in your small business, plans and plan features can be chosen accordingly
• Carefully consider your investment options – Make sure that the selection of funds is both diversified and appropriate for you and your employees
• Make sure your third-party administrator is experienced – Make sure the individual or company that sets up your plan knows what they’re doing
• Understand Roth – Review the differences between a regular 401(k) and a Roth 401(k), and decide if a Roth 401(k) is appropriate for you
• Choose your level of control – Do you want to invest in standard options (stocks, bonds, etc.) or do you want to dictate your own, expanded options (real estate, etc.)?

NADART has plans and features specifically designed for small business owners. No matter what the size of your company, NADART can help guide you through the retirement process. For more information about sponsoring a retirement plan through NADART, please contact one of our representatives at (800) 462-3278, ext. 7161 or by e-mail at nadart401k@nada.org. You can also request details via our online Product Information Request Form.