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401 (k)

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401 (k)

Join the growing number of companies offering a 401(k) plan and stand out in a competitive job market.
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401 (k)

401(k) Plan

If you're an employer looking to provide a retirement savings option for your employees or an employee planning for your retirement, a 401(k) plan can be an excellent choice.

What is a 401(k) plan?

A 401(k) plan is a retirement savings plan employers offer their employees. Employees can choose to contribute a portion of their pre-tax salary to the plan, and many employers also make contributions to the plan on behalf of their employees. The funds in the 401(k) plan are invested in various investment options, such as mutual funds or stocks, to earn a return on investment and grow the account balance over time.

Benefits of a 401(k) plan

There are multiple benefits of a 401(k) plan, both for employers and employees. Here are a few of the key advantages

Attract and retain top talent

Offering a 401(k) plan can benefit prospective employees and help retain current employees.

Tax benefits

Employer contributions to a 401(k) plan are typically tax-deductible, which can help reduce the company's tax liability.

Lower administrative costs

401(k) plans can be less expensive to administer than other retirement plans.

Retirement savings

A 401(k) plan provides a simple and convenient way for employees to save for retirement and potentially earn a higher return on investment than traditional savings accounts.

Click And Learn

Payroll deduction
Portability
Recruitment & Retention
Tax deductions
Incentivizing performance

Payroll deduction coverage

Risk Factors

Americans are 15 times more likely to save for retirement if they have access to a payroll deduction savings plan like a 401(k) at their job. This finding is hardly surprising when you consider the convenience of payroll deduction.

Solution

401 K is a good option. Employee contributions are automatically deducted from each participant’s paycheck based on their salary deferral election, which is usually based on a % of compensation.

Portability coverage

Risk Factors

An employee may constantly worry about the benefits of changing his job/employer.

Solution

When workers leave their employer, they are usually entitled to a distribution of their 401(k) account immediately. They can roll this distribution to a new employer’s 401(k) plan or a personal IRA.

Recruitment & retention copies

Risk Factors

Retirement benefits are becoming increasingly important to employees. A recent study found that two-thirds (68%) of workers said a retirement plan was a critical factor in deciding whether or not to accept a job, while 62% said a plan was a critical factor in staying with a job.

Solution

This plan can be a great benefit. A 401(k) plan can be a powerful tool for employers to attract and retain employee talent.

Tax deductions coverage

Risk Factors

Businesses are always concerned about how much tax they should pay.

Solution

All businesses can claim a tax credit deduction for paying 401(k) plan-related expenses, including Employer contributions & administration fees.

Incentivizing performance coverage

Risk Factors

A profit-sharing contribution can be allocated among 401(k) plan participants using dramatically different formulas.

Solution

This allows an employer to allocate multiple contribution rates to different employee groups – or even a different rate to each employee. Employers often use this flexibility to administer larger contribution rates to business owners or other Highly Compensated Employees (HCEs). Still, it can also be used to reward employees for high performance.

At our Insurance Agency, we understand the importance of retirement planning and helping employees save for the future. That's why we offer comprehensive 401(k) plan solutions to fit your business and employees' unique needs. Our experienced professionals can work with you to design a plan that offers the right investment options, contribution levels, and administrative support to help your employees reach their retirement goals.

Contact us today to learn more about our 401(k) plan options and how we can help you and your employees prepare for the future.

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