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 2008, the maximum deferral limit is $15,500
• 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.

For more information, please call us at 1.800.508.1144.