The Online 401k Launches New Comparability Feature
SAN FRANCISCO, CA, May 23, 2005 -- Decimal, Inc., (www.theonline401k.com) the leading provider of full-service Web-based 401k plans for small and single-person businesses, including The Online 401k, today announced the release of a feature previously unavailable for small-business 401k plans, New Comparability.
New Comparability, also known as Age-Weighted, is a type of profit-sharing plan that maximizes the amount contributed to a select group (typically the business owner and other key employees) while minimizing the total cost of the company's contributions on behalf of its employees. Because New Comparability plans have typically been complicated to administer and expensive, this feature has been out of reach for the types of businesses that it is most appropriate for: small businesses with fewer than ten employees.
With a traditional profit-sharing plan, an employer must contribute the same percentage of profits to all employees. However, under a New Comparability profit-sharing plan, an older business owner can contribute a greater percentage of the profits to his or her 401k account, tax-deferred, thanks to a the profit-sharing calculation that takes into account how long the employee has until retirement, rather than just a flat percentage.
Decimal decided to offer this feature through The Online 401k in response to the increasing requests from its small-business clients. As Baby Boomers (who comprise of approximately 77 million of the United States' population) age, these older business owners are more and more concerned about retirement and they seek strategies that can help them maximize their tax-deferred contributions.
Chad Parks, CFP®, President and CEO of Decimal, Inc. says, "With two-thirds of workers expected to work for pay in retirement (EBRI 2005 Retirement Confidence Survey), it is not surprising that business owners are very responsive to any way they can maximize their pre-tax savings and reach their retirement goals quicker. New Comparability is especially attractive for doctors, architects, lawyers and dentists; our solution has been very well received by these groups because we are presenting a simple and affordable package they can implement right away."
About Decimal, Inc.
Decimal, Inc. (www.theonline401k.com) is a national provider of full-service, unbiased 401k plans. Without hidden fees or commissions, The Online 401k provides small businesses with two to 50 employees with an easy-to-manage, low-cost, all-inclusive 401k plan and a dedicated client relations group. Decimal also offers Single(k), a flexible, easy and cost-effective solution for owner-only businesses. Founded in 1999, San Francisco-based Decimal serves more than 1,600 small business customers in all 50 states.
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