401(k) Retirement Plan Advantages

There is an increasing awareness that a qualified plan is a sound business investment. A properly established 401k plan is highly advantageous to both management and employees, regardless of company size, and less burdensome than other types of retirement plans.

401k plans advantages for the employer

1) You can compete better recruiting good employees.
2) A 401k plan helps retain good employees.
3) A retirement income plan provides for an orderly retirement process.
4) Employee appreciation increases employee morale.
5) Employer contributions are a deductible business expense. Tax savings will
    pay much of the cost.
6) Employees appreciate 401k Plan more than other types of plans.

401k plan advantages from the employees standpoint

1) Employee's tax liability for employer contributions is deferred
2) Employee contributions and investment earnings are tax deferred.
3) At retirement age distributions may qualify for special tax treatment.
4) Employees can use their account for loans
5) Assists employees in personal estate planning, reduces retirement worries.

Advantages of Plan Adoption

1) If properly set up, sheds certain fiduciary liability
2) A low cost method to provide a highly visible, voluntary saving program.
3) A good tax deferral for all including officers and the highly compensated.
4) Allows bonuses or incentives to be paid on a tax-deferred basis.
5) Provides for flexible contributions by the company.
6) Convenient and structured savings through payroll deduction.
7) Tax deferred growth while in the plan.
8) More competitive investments than participants could obtain on their own.

A Sucessful 401(k) Retierement Plan
401(k) Retirement Plan Advantages
What Is Required To Avoid Liability
Kensington Makes Compliance Easy