Eight is Enough!

Written by Brett M. Stevens


Top Candidates are still moving quickly inrepparttar marketplace. The above average candidate is still moving from resume to hire in about 3 weeks.

For example we have seen a well-known company slow downrepparttar 105041 hiring process 5 months for lower level positions. The number of interviews increased from 3 interviews to as many as 8 interviews. Almost everyone related torepparttar 105042 position was included inrepparttar 105043 hiring process creating very different thoughts onrepparttar 105044 candidate's "fit" inrepparttar 105045 organization.

Problems:

 Job Requirements change asrepparttar 105046 search continues.  Salary requirements are not compatible with talent required  Companies forget to truly "recruit"repparttar 105047 candidate  Peak, maximum effectiveness of interviews diminishes after 3 interviews  Companies are losing top talent due to long, drawn-out interview processes. Candidates are being scooped up by your competition (or by companies that have an effective, streamlined hiring process).  Prolonged interview processes can be perceived as indecisiveness thus turning off top potential hires.

Interviewing costs are now exceeding an average of $27,000 per hire, and can take more then 3 months to complete. Having position open for an extended period of time can cost companies as much as $1 million dollars in 6-9 months for some sales positions.

"Solo" 401(k) Plans Offer Big Tax Deductions: Tax-Deferred Investing to the Max

Written by Jeffrey A. Miller


Major changes torepparttar tax laws now allow small business owners to establish 401(k) plans more easily than ever before, and benefit from bigger 401(k) plan deductions than they've ever seen. These 401(k) plans have been dubbed "solo" 401(k) plans because ofrepparttar 105040 new rules' popularity among single-owner businesses. Yet, it is possible to have more than one owner and maintain a "solo" 401(k) plan, as noted below.

To obtainrepparttar 105041 benefits forrepparttar 105042 2003 tax year, however, you must act before December 31st. (For more aboutrepparttar 105043 types of investment services our investment affiliates offer, please visit http://www.marcjlane.com/decisiontree.htm) In contrast, SEP IRAs can be established atrepparttar 105044 same time your individual income tax return is filed (i.e., April 15 ofrepparttar 105045 following tax year).

This report highlights some ofrepparttar 105046 significant benefits of a solo 401(k) plan.

A solo 401(k) plan allows a small business owner and his or her family to defer and invest tax-deductible (pre-tax) retirement contributions at a fast rate. The importance of maximizing retirement plan contributions cannot be emphasized enough. Over time, compounding tax-deferred investing can significantly increase one's wealth. (For "A Case For Professional Money Management,"and more about this important aspect of growing wealth, please visit http://www.marcjlane.com/decisiontree.htm)

How you might benefit from a solo 401(k).

Eligibility. While a small business owner could establish a 401(k) plan under prior law,repparttar 105047 administrative hassles might have discouraged you from doing so. Recent legislation makes establishing a 401(k) plan much more attractive for small business owners. Now, a business entity whose only eligible participants are business owners, partners, and/or spouses of owners or partners may establish a 401(k) plan easier and with greater deductions than ever before. Children, parents, and grandparents may also participate as long as they earn income fromrepparttar 105048 business. (However, specific plan administrators may have their own guidelines or limitations regarding participants.) Nearly all forms of business entities and ownership are eligible for a Solo 401(k). Sole proprietors, partnerships, corporations (including S-corporations), LLCs, and LLPs may all establish Solo 401(k) plans.

The good news: As long asrepparttar 105049 eligible 401(k) participants are limited to those mentioned above ("eligible solo participants"),repparttar 105050 solo 401(k) will not be subject to allrepparttar 105051 administrative, recordkeeping, and investment monitoring regulations that traditional 401(k) plans must follow. Full-time employees who are at least age 21 and have one year of service must be offeredrepparttar 105052 opportunity to participate in any 401(k) plan. However, for these purposes, a part-time employee working less than 1,000 hours per year can be disregarded and will not affectrepparttar 105053 solo 401(k)'s legal compliance. It may be a good idea to set up a solo 401(k) now, even if you may add an employee who is not an eligible solo participant in future years. At that timerepparttar 105054 solo 401(k) plan can simply be suspended or terminated.

Key benefits. Underrepparttar 105055 new law, you may deduct up to $40,000 for each participant in a solo 401(k), as explained in more detail below. Even more appealing, if you and your spouse are actively involved in your business and have sufficient business earnings, you and he or she may be able to contribute - - and deduct - - up to $80,000 for retirement.

Another benefit underrepparttar 105056 new law is that you can reachrepparttar 105057 maximum deduction of $40,000 at a faster rate than ever before - - with as little as $112,000 of income in 2003. In contrast, at that income level, other retirement plans allow much lower contributions (e.g., a SIMPLE IRA would generally allow about a $11,360 deductible contribution, and a SEP IRA or Profit Sharing Plan would generally allow about a $28,000 deductible contribution. Seerepparttar 105058 comparison chart below.)

If I have a side business, will a solo 401(k) benefit me, even ifrepparttar 105059 business doesn't make much income?

Yes. In fact, a side business is a prime candidate for a solo 401(k). A traditional employee, if he or she has a side business, may now make additional deductible retirement contributions very rapidly via a solo 401(k) plan. With just $20,000 of income, you may be able to deduct up to $17,000 and only pay income taxes onrepparttar 105060 remaining $3,000. The rapid deductible contribution rate (in this case, 85%) can be very appealing to those wanting to save more for retirement, particularly ifrepparttar 105061 income generated from a side business is not required for their immediate needs. What's more, ifrepparttar 105062 participant is 50 years or older as of January 1st, "catch up" provisions allow even higher contributions for that year ($2,000 in 2003, and increasing by $1,000 each year to a maximum of $5,000 in 2006 and later years).

What other benefits does a solo 401(k) offer?

Solo 401(k) plans also offer several other advantages:

Roll over other plans. Once your 401(k) plan is established, you may roll over other retirement accounts into it.

Loans. You may borrow up to 50% of your account balance (up to a $50,000 loan) and repay it over five years (or over 10 years, ifrepparttar 105063 loan is used for a principal residence).

Brokerage accounts. The plan may include a self-directed brokerage account, allowing maximum investment flexibility.

No tax return. No tax returns forrepparttar 105064 plan are necessary, as long as assets remain under $100,000.

Simplified tax return. If assets exceed $100,000, a simplified tax return may be filed ifrepparttar 105065 plan covers only you (and your spouse) or one or more partners (and their spouses).

No FICA tax. The employer contribution portion is not subject to FICA (Social Security) or self-employment taxes (but any salary deferral portion is subject to tax. See "Comparison of Contributions" below for description of methods of contribution).

Extended contribution date. Employer contributions may be made after year-end (by your tax return deadline, including extensions). However, salary deferrals must be made by December 31st, and may only be made from income earned afterrepparttar 105066 401(k) plan is established.

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