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Most business owners realize the importance of offering attractive benefits to their employees. However, as a cost-concious employer, you are always concerned that the benefits outweigh the cost of implementing such a plan.
A qualified retirement plan such as a 401(k) may provide the favorable benefits you are seeking. A well implemented retirement plan lets you and your employees build your own tax-sheltered retirement accounts through affordable and convenient payroll deductions.
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Payroll
Deduction
Convenience |
Saving is ultra-convenient with your 401(k) because the money comes right out of your pay before you get your paycheck. You don't see the money, so you're not tempted to spend it! |
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| Match |
Many plan sponsors will match a portion of your contributions to a 401(k) plan. |
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| Loans |
Your 401(k) plan may allow you to borrow a portion of your vested account for certain reasons. The interest you pay on your plan loan is typically paid back into your own account. |
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| Investment Flexibility |
Most of 401(k) plan sponsors give participants a selection of mutual funds to invest both the employee's and the company's contributions. |
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| Taxability |
A major benefit to 401(k) plans is their tax-saving feature. In most cases, salary deferral contributions are subtracted from gross wages before federal, state and local income taxes are withheld. |
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