"Many small businesses mistakenly think setting up a retirement plan is too complex or too costly to set up, so they put it on hold," said Randy Berry, manager of Fiducial's Western region financial services group. "In today's economy, however, a retirement plan could be the least expensive benefit a small business can offer. It offers benefits to the business and is extremely important to the future security of employees."

Recent statistics by the Small Business Administration (SBA) and the Employee Benefit Research Institute, a nonprofit public policy research organization, noted that more than 50 percent of small businesses don't know what types of plans are available to them and their employees, while more than 30 percent are mistaken about the administrative burdens; more than 70 percent of small businesses report being unaware of tax changes that give tax credits for start-up plan costs; and only seven percent of small businesses say they want to start a plan soon, down from 17 percent two years ago.

Among the reasons that small businesses are so out of the loop on retirement planning, Berry said, is that they're overwhelmed with running their businesses.

"Small business owners are often under the gun because they're operating with relatively small staffs and resources. It's the owner or a single employee that handles major decisions and oversees state and federal regulatory compliance, payroll processing, hiring and firing, and management of employee benefits. A retirement plan may seem like just one more 'to do' that can be put off."

So what should small businesses do to learn about their retirement plan options and their related tax benefits? Fiducial offers the following tips:

• Consider why you should have a plan. As part of your total employee benefit package, a retirement plan is an important tool to attract and retain qualified employees. Retirement plans offer tax advantages for both the employer and employee. Small businesses can receive tax credits of up to 50 percent for three years with a maximum credit of $500 for each year to offset start-up costs.
  
  
• Look into your options. Identify the type of plan that best matches your small business needs. Most small businesses will find that they can offer Simple-IRAs, the Simplified Employee Pension (SEP), or a 401(k). Investigate balanced retirement plan choices that represent realistic investment strategies. Remember that a retirement plan is a funding vehicle for your employees' savings, so it must be based on their individual risk tolerances.
  
  
• Find a qualified advisor to help you. Entrust qualified advisors -- such as those who are already doing your taxes and accounting work -- to help select and manage the retirement plan. Work with financial experts that will get to know your business and your employees so they can tailor a program that fits your unique requirements. Establish a retirement plan prior to year-end so it coincides with traditional January open enrollment windows for employees.
  
  
• Know what is expected once you have a plan. Anticipate paying up to $1,200 to start up a new plan. For a 401(k) plan, start-up costs can be as low as $750, plus a plan participant fee of $25 to $40 per employee annually. Understand and meet fiduciary obligations, including making plan investments at specified times and providing plan information and specifics of eligibility to all employees at their time of hire and their date of plan eligibility.