Perhaps signaling confidence in the economy by small business owners, contributions to self-employed 401(k)’s, SIMPLE IRAs and SEP IRAs have increased dramatically since the Great Recession, according to Fidelity research involving 200,000 small businesses. The overall increase was 18%.
Account balances for the three types of retirement accounts have increased 88% since 2008. Other highlights of the research include:
• Contribution increases in 2013:
— 21% for self-employed 401(k)s
— 17% for SEP IRAs
— 7% for SIMPLE IRAs
• Account balances:
— $137,447 in 2013 versus $75,275 in 2008
— increases of 92% for SEPs and more than 100% for SIMPLE accounts
Small businesses grow into bigger ones and, as they hire more people, become be good candidates for DC plans.
