• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

401(k) 101: How to start a plan from scratch

by on
in Centerpiece,Employee Benefits Program,Human Resources

When cash for pay raises is tight, it’s hard to use compensation as a carrot to attract and retain great em­­ployees. But the uncertain economy has many workers increasingly focused on long-term financial security. That makes better retirement benefits all the more attractive.

If you don’t currently offer a retirement plan—or if you’re thinking about stepping up from SIMPLE (Savings Incentive Match Plan for Employees) or SEP (Simplified Employee-Pension) plans—it might be time to consider establishing a 401(k) retirement plan.

401(k)s typically invest money in mutual funds, which employees can tap once they retire.

Any employer can sponsor a 401(k) plan. Many match employee contributions to 401(k) accounts, but it’s not required. Employers that do match, however, gain significant tax benefits, which your tax advisor can explain.

When you establish a 401(k) plan, you must take certain basic actions.

One of your first decision...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment