The Most-Important Year End Tax Tip for Small Business: Start a 401(k) before 12/31

As 2011 winds down to a close, many small business owners are scrutinizing year-end tax deadlines in a last-ditch effort to lighten their payment to Uncle Sam come April. One of the smartest moves they can make (including the self-employed) is to start a 401(k) plan before December 31st.  It�s important to note that while a few solo 401(k) plan providers will allow purchases for a 2011 plan through December 31st, a traditional plan for a business with employees would need to be purchased a week or two earlier.   Then the business can use the 401(k) profit sharing component to make tax deductible contributions for 2011 through the business� tax deadline (that�s April 17th for many).

But before any small business rushes out to buy a plan, it�s important to have the right information that allows for smart and informed decision making.  To simplify this process, I�ve hand-picked the following five articles from my Forbes blog to help dispel some common misperceptions, identify the right type of 401(k) plan for businesses based on their structure and goals, and help them to quickly discern which providers should ultimately make the final cut.  Its twenty minutes of time well spent that can make a big difference in the success of a business� saving and tax management strategies for years to come:

Five Reasons Your Business Is Not Too Small for a 401(k)

Five Ways to Lower Taxes with a 401(k)

So Many Types of 401(k)s. Which is the Perfect Match for Your Business?

The Top Four Things to Look for When Shopping for a 401(k)

Six Things Your 401(k) Provider Doesn�t Want You to Know

Something you still have questions about?  Let me know and I�ll help answer.