What is a 401(k)?
401(k) plan is a qualified employer-established plan to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings in a 401(k) plan accrue on a tax-deferred basis.
Here is a video to help you understand these plans:
What are the benefits of a 401(k)?
As a business owner, it is in your best interest to attract potential employees to your company. Many people look for jobs that include healthcare as part of the benefits package. But, more people are learning the importance of starting to save for retirement at a younger age. So, 401(k) plans are growing in popularity.
By offering a 401(k) plan, you are telling your employees that you care about their future and personal assets. Help your staff get the most out of what you offer in your 401(k) plan. Tell them about details like investment options, how to make changes, and matching information.
Get started today!
Are you ready to add retirement savings to the list of benefits your business offers? Call us to learn more about setting up a program today.