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401(k) Plans
Features
Giving you employees a 401(k) plan is a highly sought after
benefit by today's employees.
The 401(k) plan will provide them a very straightforward
way to save on their taxes. Since contributions are made on
a pre-tax basis, the government will take a smaller bite out
of their paycheck. The money is 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. You'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.
401 (k) Features
- Pre-tax contributions may reduce employee'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)
May include:
- Union employees
- Certain nonresident aliens (no age requirement)
Plan Contribution Limits
- As of 2004, the maximum deferral limit
is $13,000
- If you are over the age of 50, the maximum deferral limit is $16,000.
- 25% of gross compensation or $40,000 per
individual limit (including employee deferrals, employer
contributions, and forfeitures)
- Maximum employer deduction is 15% of total
eligible payroll
Distributions
- Attainment of plan's normal retirement
age
- Financial hardship
- Permanent disability
- Plan termination
- Separation from service
- Death
- Maximum distributions required at age 70
1/2 or retirement, whichever is later
Deadline to Setup/Contribute
- Plan must be adopted by employer's year
end
- Employer contributions must be made by
employer's tax filing deadline, plus extensions.
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| Traditional IRA/ROTH | Pension Profit Sharing |
| SEP Simple IRA | 401(k) | Non-Qualified Retirement Strategies |
| IRA Rollover Strategies | Free Financial Newsletters |
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