Carriers and Group 401k

[Bruno]

I was wanting to know if your Carrier offered a Group 401K to it's contractor that an outside company took care of would you join it. Lets say Panther did this and took out of your settlements $25.00 a week for every driver. That is alot of money as a group. Maybe DaveKc or Phil can step in on this one and talk about it? Like if this something that can be Done?

 

[x06col]

Might an owner step up to that plate first? Might be the place to start. If it's an issue.

 

[ATeam]

Maybe DaveKc or Phil can step in on this one and talk about it? Like if this something that can be Done?

-- Pass --

 

[davekc]

There are a couple of carriers that offer a plan through a third party insurance/investment plan.
401k's can be started and maintained by a independent contractor, however most fleet owners wouldn't be involved as that would translate into a independent contractor possibility being classified as a employee.
It would be wise to consult a tax or business attorney PRIOR to engaging in this type of plan if you hire independent contractors.

 

[LDB]

I believe it could create serious issues with the independent contractor status if the carrier contributed and if they don't contribute there's no advantage to it at all. The individual can do basically the same thing for themself with a Roth IRA. If the idea is that it's $25 a week going in without being touched or seen on payday so it's just the discipline factor an automatic debit can do the same thing. I'd suggest exploring that option as well.

 

[davekc]

Yep...the self employed can get their own 401k plan through a variety of sources.

 

[Tennesseahawk]

I wouldn't trust a carrier to hold my 401k; as they might be too tempted to not loosen their grip when you decide to leave... just like some companies do with escrows.

 

[jaminjim]

The carriers would most likely not hold any of the money nor would they administer any of the plan other than sign papers. Playing with someones retirement account is no where as easy as an escrow.

But a Roth IRA is probably the best way to go for the average O/O.

 

[nightcreacher]

A carrier might be able to tell you where you might set up 401k on your own, but they will not be able to do it for you,the contractor employee thing,you wouldnt want Panther to with hold your taxes,would you?

 

[x06col]

After reading this thread and some other ones, i'm kinda wondering if someone wants all these grand things, and has as large a resume of background and experience in this business as stated, then why, don't they just go do their own thing, make oodles of money, then they would have plenty of funds (and time) to administer an idea like this? Should be easy, no? Jes hang your shingle, and wait for the phone to ring.

Republican? Reads like socialist demo bs to me. Gotta have the umbrella whilst hunting the roast goose.

 

[Moot]

What Leo said! 401K's are for employees. When I became an independent contractor I rolled my 401K into a Roth IRA. Kept it with the same investment company but I could have moved it anywhere.

If you are incorporated and pay yourself a wage or salary then you may be able to set up a 401K with the corporation matching a percent of your contribution. If you're like me and I know I am, them I would consult a tax expert before believing and acting on advice from a van driver.