We have a small business with three employees, all of which are owners so do not count as "common law employees." My research shows we can set up a Vanguard Individual 401k since we are all owners and there will be no fees since I qualify for Voyager services with Vanguard and will be active in the 401k.
https://investor.vanguard.com/what-we-offer/small-business/individual-401kMy first question is, can the employer - the business - make a contribution to the 401k of an employee that does not make a contribution? While I plan to max out my contributions I do not plan to tie the employer contribution to the employee's contributions if it's not required; rather contributing the max that the company can to each employee's 401k.
All three of us draw salaries of $70k/year. So for 2015 our limits are $18,000 employee contribution and $17,500 employer contribution, correct?
Lastly, if I set up the 401k prior to April 15th can I make an employer contribution for 2014? What about employee contribution? I assume no on the employee contribution since the funds are required to come out of a paycheck or deferred pay and all 2014 payroll has been disbursed.
My only regret is not realizing this awesome savings tool was available to us before now! We could have cut our corporate and personal taxes in the last few years. Ahh well, live and learn, at least I found it now.