I am trying to get an education about 401K plans for small business. It is my understanding there is something referred to as a "small business 401K" where you can own a small business and you and your spouse are the only contributors to the 401K plan. We own a small business and the spouse and myself are the only employees - everyone else is a contractor (not an employee).I sort of understand that each of us can contribute $17,500 this year PLUS $5500 catch up, if we are over 50 (which we both are). So, a total of $23,000 each, if we open the 401K by December 31st for this tax year (2013).I am trying to further understand, that I think these 401k contributions are deductible as a business expense? Can anyone explain this? So, if I am understanding this - we could have $23,000 for each of us as a deductible business expense on our tax return?If I am on the right track here (and bear with me, because I am real beginner with this), we would then compare 401K plans offered by various companies, and choose one, and then send in to the fund ($23,000 for each for us by December 31st). I guess my next question is what to look for in comparing them. We have some stocks in an E-trade account, and I believe they offer 401K plans (not sure about this). Is it just simple for us to open one with E-trade? I guess E-trade may offer several?Anyway, I guess you can tell I am just beginning to research this. I would ask our CPA all this - but we are seriously thinking about finding another CPA, because we are wondering why he didn't advise us of this a few years ago. So, at this point, we are looking for another CPA. Any help at all would be greatly appreciated. Thanks.Footsox
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