Unlike an IRA, small company retirement plans are complex enough that you should seek professional counsel before making a decision as to what plan is best for your company. It can be used by sole proprietors, partnerships, and small corporations, including S-type corporations. Keoghs are popular for consultants and the self-employed. They are not used for small corporations. This is worthwhile, especially in a tight labor market.
Employees make contributions from their pretax earnings.
The company may or may not choose to offer matching contributions. They want to save money for themselves, but are unwilling to do so for their employees. That says worlds about how they view their employees. And, I think we will see even greater cost reductions as administration becomes more and more Internet-based. Usually, there is a fixed annual fee and a small, per participant fee.