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 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.
Contact GLSA today by calling (256) 539-4805 or filling out the contact form.