Giving your employees a 401(k) plan is a highly sought after benefit.
The 401(k) plan will provide your employees with a very straightforward way to save taxes. Since contributions are made on a pre-tax basis, the government will take a smaller bite out of their paycheck. The money is then invested on a tax-deferred basis.
As a 401(k) investor, they will get the advantages of professional investment management and a range of attractive investment options. Youâ€™ve taken a crucial step toward giving your employees a brighter financial future.
As an employer, a 401(k) may be suitable for small to large companies who want to offer a salary reduction plan with a maximum number of options to their employees.
For more information on how a 401 (k) program can assist your company, simply fill out the form to your left and a representative will be in contact with you by the next business day.
- Pre-tax contributions may reduce employeeâ€™s current taxable income
- Primarily employee funded
- May include discretionary employer contributions and/or employer matching contributions
- Flexibility in plan design
- May allow for plan loans
Must include all employees who:
- Are over 21 years old
- Have completed one year of service (must have worked at least 1,000 hours each year)
- Union employees
- Certain nonresident aliens (no age requirement)
Plan Contribution Limits
- As of 2015, the maximum deferral limit is $18,000
- If you are over the age of 50, an additional â€œcatch-upâ€ $6,000 contribution is available.
- 25% of gross compensation or $53,000 per individual limit (including employee deferrals, employer contributions, and forfeitures)
- Maximum employer deduction is 15% of total eligible payroll
- Attainment of planâ€™s normal retirement age
- Financial hardship
- Permanent disability
- Plan termination
- Separation from service
- Maximum distributions required at age 70 1/2 or retirement, whichever is later
Deadline to Setup/Contribute
- Plan must be adopted by employerâ€™s year end
- Employer contributions must be made by employerâ€™s tax filing deadline, plus extensions.
For more information, please call us at 1.800.508.1144.