What is a 401 (k) Plan?
A 401(k) plan is a retirement savings plan provided by an employer that allows employees to save pre-tax dollars for their retirement, thereby reducing the employee’s taxable income. The employee’s money is invested in the investment types of their choice and grows on a tax-deferred basis until they start receiving distributions, usually at retirement.
401(k) simply refers to the section of the Internal Revenue Code that allows this type of plan and qualifies it for certain exemptions under federal law.
Why choose a 401K Retirement Plan?
The Reason is simple: It is cheaper to provide employees with benefits that will create loyalty to your organization, than it is to repeatedly train the same task to a new employee. Employees today are looking to those employers who making available these types of Retirement Plans.
Various funding methods exist for these plans ranging from no participation by the employer to various types of matching of contributed funds by the employee.
Training new people is more expensive than providing your current employees with great benefits. The proposal process and installation process for these types of plans have become increasingly simple.
The following agents are trained in this specialized area of coverage:
- Jay Semaan:
- Travis England:
- Dan Roddy:
- Ted Elink Schuurman: