---
title: "To Do: Create a 401(k) Program for Small Manufacturers"
summary: |-
  Congress should create a “401(K)” program for small manufacturers to invest in R&D, workforce retraining, or new plants and capital equipment.
date: "2012-09-20"
issues: ["Enterprise Policy"]
content_type: "Knowledge Base Articles"
canonical_url: "https://itif.org/publications/2012/09/20/to-do-create-a-401k-program-for-small-manufacturers/"
---

# To Do: Create a 401(k) Program for Small Manufacturers

# Recommendation

Congress should create a “401(K)” program for small manufacturers.

# Details

Some U.S. states, such as Connecticut, have created a 401(K) program for small manufacturers that allows them to place up to $1 million into a tax-deferred, investable account but allow the money to only be withdrawn for subsequent investments in R&D, workforce retraining, or new plants and capital equipment. Congress should set up a similar program at the nation level.

**Keep reading:**

- Stephen Ezell and Robert D. Atkinson, “Fifty Ways to Leave Your Competitiveness Woes Behind: A National Traded Sector Competitiveness Strategy” (ITIF, September 2012), [https://itif.org/publications/2012/09/20/fifty-ways-leave-your-competitiveness-woes-behind-national-traded-sector](https://itif.org/publications/2012/09/20/fifty-ways-leave-your-competitiveness-woes-behind-national-traded-sector).

---
*Source: Information Technology & Innovation Foundation (ITIF)*
*URL: https://itif.org/publications/2012/09/20/to-do-create-a-401k-program-for-small-manufacturers/*