The Real Estate Board of New York is aiding members in their retirement planning by extending optional enrollment in a 401K plan, the association said. The move is likely especially of interest for real estate brokers, most of whom are independent contractors and therefore ineligible for benefits through their brokerages.
Participants can save up to $51,000 pre-tax annually, and members aged 50 and older have the option to make an additional $5,500 catch-up salary deferral, according to a release from the association. Traditional corporate plans only allow up to $17,500, according to REBNY.
“Traditional 401(k) plans offered to corporate employees have become the cornerstone of retirement planning,” Christoper Michelsen, a financial advisor with UBS Financial Services, which is administering the plan, said in the REBNY release. “Now, an independent contractor who is a member of the Real Estate Board of New York can establish an independent 401(k) plan.”
REBNY member-exclusive benefits for the plan will include a waiver of all plan enrollment costs through June 30, 2014 and access to a team of UBS financial planning guides. It was not immediately clear what types of fees participation will involve beyond the June 30 cut off. — Julie Strickland