Charles Schwab has announced that it is doing away with account service fees on retail defined contribution retirement plans for the self employed and small business owners to encourage them to take advantage of the retirement plan options that are available to them. The plans include individual 401(k) plans, 403(b)(7) plans, Qualified Retirement Plans, Keogh plans, SEP-IRAs, and Simple IRAs. The fee elimination does not pertain to any retirement account services that Schwab offers.
A recent study, conducted by National Federation of Independent Businesses, uncovered that many small business owners are not taking advantage of retirement plan options. In fact, 38% of small business owners admit they are "behind schedule" when it comes to retirement.
Since Schwab's retail small business clients are owner-only business, Schwab is jumping at the chance to give them opportunity to "ramp up" retirement savings.
"Many small business owners just aren't aware of the great retirement plan options available to them, whether they are contractors or consultants, owner-only firms, or small businesses with employees," said Tracy Siegel, vice president for retirement and education products at Schwab. "These plans offer a world of flexibility. There's a retirement plan solution available for almost every small business owner - regardless of whether it's someone just starting out as self-employed consultant or someone with a more mature business who needs to play catch-up."
Also, Schwab is currently trying to educate small business owners about their retirement plan options with a newly published Guide to Small Business Retirement Plans.