401k
Why 401(k) Plans?
401(k) plans can be a powerful tool in promoting financial security in retirement. They are a valuable option for businesses considering a retirement plan, providing benefits to employees and their employers.
Employers start a 401(k) plan for a host of reasons:
- A well-designed 401(k) plan can help attract and keep talented employees.
- It allows participants to decide how much to contribute to their accounts.
- Employers are entitled to a tax deduction for contributions to employees’ accounts.
- A 401(k) plan benefits a mix of rank-and-file employees and owners/managers.
- The money contributed may grow through investments in stocks, bonds, mutual funds, money market funds, savings accounts, and other investment vehicles.
- Contributions and earnings generally are not taxed by the Federal Government or by most State governments until they are distributed.
- A 401(k) plan may allow participants to take their benefits with them when they leave the company, easing administrative responsibilities.
Calculator
401(k) Contribution
You want to save for retirement and take advantage of your employer's match in your 401(k) plan, but you aren't sure you can afford to. You may be surprised to see how contributing to your 401(k) will increase your income without taking a big bite out of your paycheck. View Calculator