Labor Department and IRS Unveil Booklet To Assist Small Businesses To Start, Operate 401(k) Plans

Archived News Release — Caution: Information may be out of date.

Washington, DC - The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) and the Internal Revenue Service (IRS) today released a new booklet, “401(k) Plans for Small Businesses,” as part of an ongoing effort to provide compliance assistance to small employers on retirement plan issues. The booklet provides a comprehensive overview of this popular retirement savings option and what is involved in starting and operating a 401(k).

The publication is designed to help small employers and plan officials better understand the important role they play in ensuring the security of their plan and their responsibilities under the Employee Retirement Income Security Act (ERISA). It also highlights some of the choices small-business owners have in establishing a 401(k) plan, including the type of plan to offer. The publication describes the three types of 401(k) plan designs currently available – traditional, safe harbor or SIMPLE 401(k) plans – and discusses the features and advantages of each.

“It is crucial that we encourage small businesses to provide these valuable benefits to workers,” said Ann L. Combs, Assistant Secretary of Labor. “This publication draws a clear road map for employers who want to provide a plan, but need some friendly directions along the way.”The new guide, “401(k) Plans for Small Businesses,” is available from EBSA’s toll-free number at 1.866.444.EBSA (3272) and can be viewed on both the DOL and IRS Web sites at www.dol.gov/ebsa (under publications) and www.irs.gov/ep.

U.S. Labor Department releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.

Archived News Release — Caution: Information may be out of date.