The Internal Revenue Service has created a new Web-based tool to help small-business owners determine which tax-favored pension plan best suits their needs and how to keep their plans in compliance.
The IRS Retirement Plan Navigator aims to provide employers with an online guide for choosing, maintaining and correcting a plan. The navigator does not suggest which plan may be best for a specific employer, but instead lays out the options to allow small-business owners to choose a plan that best fits their situation. Options include 401(k) plans, plans with individual retirement accounts, defined-benefit plans and tax-exempt plans. The navigator includes a side-by-side comparison of the various types of pension plans and their requirements.
The navigator also provides a checklist and suggested resources for maintaining compliance. It offers suggested options to employers seeking to correct errors and bring their plans back into compliance.
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The Retirement Plan Navigator targets small-business owners, but can also help midsized businesses and their accountants review the various options. Individuals who want to better understand their employer’s plan may also find it of use.
The IRS said the Web-based guide will be kept up to date as pension laws and regulations change.
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