--- title: 401(k)'s are Killing Business Owners Retirement - RMC Group description: Watch this short video with Regional Vice President, Tom Bacharach, to learn why he believes that 401(k)'s are killing business owners retirement. image: https://rmcgp.com/hubfs/Imported_Blog_Media/401k-video.jpg --- [ ← Back to Blog ](https://rmcgp.com/blog) # 401(k)’s are Killing Business Owners Retirement Written By RMC Group Published on: January 31, 2019 ![401(k)’s are Killing Business Owners Retirement](https://rmcgp.com/hubfs/Imported_Blog_Media/401k-video.jpg) [x_video_embed type=”16:9″][/x_video_embed]   *[Transcript]* Right now one of the biggest secrets is that 401(k)’s right now are killing business owners retirement. See the problem is that most business owners are looking at defined benefit plans like 401(k), SEP, simples of those type of things. In 2019 they are limited by only being able to contribute $19,000 and another $6,000 if you’re over age 50. In a simple plan, it’s limited even further by $13,000. So what happens is the owner who’s at risk who is making sure that everybody has employment is being treated as the most junior as the most junior staff is. Seems a little unfair… With a defined benefit plan, you can set a plan up so that that business owner is getting the lion’s share of the benefit and what those plans can offer is the largest tax deduction. Currently available under the IRS codes you can help defer reduce or even eliminate some of your stock market risk, you can use those benefits to buy estate planning tools, and as of 2019 you can guarantee an income of up to $225,000 a year guaranteed for life. It’s a much better way of offering things to an employer instead of a 401(k). ## Related Blog Posts [![Closing the Gap: What Women's Retirement Security Day Means for Your Future](https://rmcgp.com/hubfs/RMC%20-%20Blog%20Header-Jul-08-2026-07-55-51-4334-PM.png) ](https://rmcgp.com/blog/closing-the-gap-what-womens-retirement-security-day-means-for-your-future) ### [Closing the Gap: What Women's Retirement Security Day Means for Your Future](https://rmcgp.com/blog/closing-the-gap-what-womens-retirement-security-day-means-for-your-future) On Women’s Retirement Security Day, we spotlight the retirement savings gap between women and men—and what you can do about it. Building a secure retirement isn't easy for anyone. But for women, the... [Read More](https://rmcgp.com/blog/closing-the-gap-what-womens-retirement-security-day-means-for-your-future) [![The IRS Announces Health Plan Limits For 2027](https://rmcgp.com/hubfs/RMC%20-%20Blog%20Header%20(2)-Jun-01-2026-09-11-11-7643-PM.png) ](https://rmcgp.com/blog/the-irs-announces-health-plan-limits-for-2027) ### [The IRS Announces Health Plan Limits For 2027](https://rmcgp.com/blog/the-irs-announces-health-plan-limits-for-2027) On May 29, 2026, the IRS issued Rev. Proc. 2026-24 in which it announced cost-of-living adjustments for Health Savings Accounts (HSAs), High-Deductible Health Plans (HDHPs) and excepted benefit... [Read More](https://rmcgp.com/blog/the-irs-announces-health-plan-limits-for-2027) [![What Happens to Your Retirement Plan When You Sell Your Business?](https://rmcgp.com/hubfs/RMC%20-%20Blog%20Header%20(1)-May-28-2026-04-06-00-2941-PM.png) ](https://rmcgp.com/blog/what-happens-to-your-retirement-plan-when-you-sell-your-business) ### [What Happens to Your Retirement Plan When You Sell Your Business?](https://rmcgp.com/blog/what-happens-to-your-retirement-plan-when-you-sell-your-business) A clear summary of your options, obligations, and next steps for protecting your retirement savings through a business sale Selling your business is one of the most significant financial events of... [Read More](https://rmcgp.com/blog/what-happens-to-your-retirement-plan-when-you-sell-your-business) 1004 Collier Center Way #206 Naples, FL 34110 ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "RMC Group", "url" : "https://rmcgp.com/blog/author/rmc-group" }, "dateModified" : "2026-05-01T16:53:34.237Z", "datePublished" : "2019-01-31T16:19:09.000Z", "headline" : "401(k)'s are Killing Business Owners Retirement - RMC Group", "image" : [ "https://rmcgp.com/hubfs/Imported_Blog_Media/401k-video.jpg" ], "mainEntityOfPage" : { "@id" : "https://rmcgp.com/blog/2019/01/31/401ks-are-killing-business-owners-retirement", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://rmcgp.com/hubfs/RMC_Group_Logo_%5BYW.BL.NA%5D.svg" }, "name" : "RMC Group" } } ```