401 (k) Planning

A 401(k) is the most common form of investment plan to anyone working for a large company, however small businesses and companies are also beginning to offer these plans more and more to help their employees save for retirement. This program has good benefits for many companies because it offers a wide array of investment options.

Selecting the right retirement plan is important to both companies and employees, which is why we encourage you to consult with one of our professionals – we will be sure to work with you to find a plan that is best suited for your company and its needs.

What are the Requirements?

  • Creating a written plan for the administration
  • Establishing a trust fund for the planned assets
  • Adhering to more strict record keeping requirements
  • Adhering to fiduciary responsibilities and duties

Typically outside firms handle the operational aspects of a 401(k) plan due to substantial administrative requirements. There is also a plan available to sole proprietors called a Solo(k).

A 401(k) plan might allow participants to take their benefits with them once they leave the company which helps to alleviate administrative burdens.

Employers have the ability to establish “vesting” schedules to increase employee retention and contribution. This allows participants to decide how much to contribute to their accounts on a before-tax basis. Employers are able to take advantage of tax deductions for their contributions to employee’s accounts. Generally speaking, the Federal and State governments will not tax contributions and earnings until they are distributed.

Selecting the right retirement plan is important to both companies and employees, which is why we encourage you to consult with one of our professionals; we will be sure to work with you to find a plan that is best suited for your company and its needs.

Ready to create a personalized plan for meeting your financial goals?

Contact us for a Portfolio Review.