Information for 401k Plan Trustees, Enrollment and 401k Transfer
benefits can provide many paybacks to a business and its owners. One
payback is staff retention, and another is reduced turnover. In
addition, an attractive employee benefits package will often help
businesses recruit and retain quality employees.
employee benefit plan can be a complex undertaking, as plans can
cover health care, vacation, sick pay, and retirement plans.
Employee benefits will have different levels of value depending on
employees’ age, gender, and other factors, so it is important to
understand which benefits may be most desired by the workforce, as
well as being competitive in the marketplace.
employee benefit is a retirement savings program. A common plan is
the 401(k), which allows workers to contribute pre-tax dollars into
a retirement fund. 401k plans also allow the employer to either
match those contributions or not match them – giving employers the
flexibility depending on revenue and priorities. Employers opting not to have a match can usually offer 401k
plans to employees for a fraction of the cost of other popular
benefits such as health care plans.
With the future of
Social Security uncertain, these employer-sponsored programs can
help working Americans save for their retirement.
Employees often list
retirement plans as a key benefit second only to health care. These plans can help a business attract and retain good
Businesses of any
size can set up a traditional 401(k) plan, which do not require
employer contributions. Businesses of any size can also adopt safe
harbor 401(k) plans. This type of retirement plan is similar to the
traditional 401(k), except that business owners have to make
The SIMPLE (savings
incentive match plan for employees) 401(k) plan, another type of
retirement plan employee benefit, was established for small
businesses with 100 or fewer employees. With a SIMPLE 401(k), the
employer makes contributions to traditional IRAs (SIMPLE IRAs) that
are set up for each of the eligible employees.
contributions to their employees’ 401(k) plans are tax-deductible,
but depending on the plan, contributions may not be required. There
are also age restrictions on a 401(k) in that employees must be at
least age 21, and the contribution for employees age 50 and over is
higher than the established limit. In addition, employees can take
401(k) plans with them when they leave the company.
401k Plan Services
401k Plan Investment Options
401k Plan Setup
401k Survey finds investors, employees un-informed
Fidelity 401k Plan Advisor