401(k)

• Employer-sponsored retirement planning
• Convenience of payroll deductions
• Pre-tax deferrals and tax-deferred growth

As a business owner/manager, there are several ways you can compensate your employees. 401(k) plans are becoming a must for retaining and recruiting talented workers.

How do 401(k) plans works?

401(k) plans give eligible employees the choice of deferring certain amounts of compensation until retirement. The employer "sponsors the plan" enabling this process. As a plan sponsor, you retain certain responsibilities regarding the plan's operation. Usually, an employer will "match" an employee's contribution to make the process easier and increase the benefit of working for your company. Best of all, amounts contributed generally provide tax deductions to you and your employees.

Why would I want to sponsor a 401(k) plan?

Statistically, many people do a poor job of saving for retirement. Sponsoring a 401(k) plan provides distinct advantages for the employee to build a nest egg.

• Payroll Deduction
• Pre-tax Deferrals
• Tax-deferred Growth
• Employer Matching Contributions

Aren't 401(k) plans complicated and expensive to administer?

Not at all. In fact, with recent changes to government regulations, the process is easier than ever before. It’s easy to design a custom plan for your company and depending on the size of your workforce, the cost of administering the plan can be paid over time to minimize the impact on your budget. Sponsoring a 401(k) plan should not be a burden to the employer.