401(k) 101: How to start a plan from scratch — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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401(k) 101: How to start a plan from scratch

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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)

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