A Fidelity Investments survey of small business owners found that more than half, or 53 percent, of the nation's 6 million small businesses may not have the retirement plan that best fits their needs. It also found that small business owners are struggling to understand the features and benefits of their current retirement plans.
The survey, of more than 500 small business owners, tried to gauge their understanding of SEP-IRAs, Simple-IRAs and Self-Employed 401(k) plans. The results highlighted the education gap that many small business owners face with their current plans.
Half of those surveyed who use a Self-Employed 401(k) did not know the maximum annual employer contribution allowed for this plan. Sixty percent with SIMPLE-IRAs were not aware that employer tax filing is not required. More than half, or 55 percent, using SEP-IRAs did not know that the plan is funded solely by employer contributions.
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