Help Made Available for Those Looking For Solo(k) Retirement Plan Providers

PORTLAND, ORE., OCTOBER 31, 2002 -- The self-employed used to say that 401(k) plans weren't in tune with their needs—but thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), they're now singing their praises. While EGTRRA did not explicitly create a new type of retirement plan, it made a number of constructive changes to existing laws governing 401(k) plans. In doing so, the legislation had an unintended benefit-one that caters to the distinctive needs of small businesses where the owner or owners are the only employees. But finding vendors who provide this new retirement account has been a challenge, until now.

401khelpcenter.com (www.401khelpcenter.com), a principal provider of information, opinion, analysis, news, rules, and other 401(k) resources for plan sponsors, small businesses, and plan participants, has compiled and is making available free of charge a report of the principal providers of Solo(k) plans.

The report contains all the necessary information to contact and obtain specific information from each provider so the self-employed person can shop and compare vendors. Additionally, the report provides an appendix containing web resources that fully explain how Solo(k) plans work and their advantages. This free report can be obtained at http://www.401khelpcenter.com/solok_vendors.html .

Solo(k) plans are the fastest-growing segment of the defined-contribution market according to Boston-based business consultants Cerulli Associates. This is because changes made by EGTRRA allow the self-employed to pack away lots more cash for retirement with fewer limitations than they could with the traditional 401(k). This has made them an attractive choice for many sole proprietorships.

"The Solo(k) or Individual(k) plan allows the ultra small business owner to finally have the same 401k benefit as the largest corporations," says Pat Shelton of BenefitPlansPlus, LLC (www.bpp401k.com). "They get all the bells and whistles along with maximum flexibility and much larger contributions limits."

This type of plan is only available to owner-only sole-proprietors, partnerships and corporations. According to published reports, a sole proprietor with a net profit of $150,000 in 2002 could contribute a maximum of $39,545 to a Solo(k) plan compared with $28,545 for a profit-sharing or money-purchase plan, $18,616 for a SEP, and $11,156 for a SIMPLE IRA. A spouse who works in the business can also participate, up to a maximum of $40,000 a year.

About 401khelpcenter.com, LLC

401kHelpCenter.Com, LLC, based in Portland, Oregon, is a leading provider of information, opinion, analysis, trends, news, regulatory changes, and other resources on 401k. Founded in 1999, its objective is to provide an easy and effortless way for plan sponsors, human resource personnel, retirement professionals, small business owners, and plan participants to obtain unbiased information specific to 401k plans. Named "Best of the Web 2002" by Human Resource Executive magazine.




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