NU Online News Service, June 9, 2004, 3:59 p.m. EDT – Individual 401(k) plans could have $3 billion in assets by the end of the year, up from $1.5 billion in assets today.[@@]
Financial Research Corp., Boston, makes that prediction in a new report on the “Indy-k” market.
Tax law changes helped financial services companies introduce the plans in 2002. This year, freelancers and other heads of “owner-only” businesses can contribute $41,000 to Indy-k plans, and owners who are at least 50 can contribute $44,000.
The dozens of players in the Indy-k market probably will set up more than 40,000 plans this year, FRC estimates.
FRC is a unit of BISYS Group Inc., New York.