401k Employee Benefits

Tax Benefits and Savings

Employee contributions are tax deductible from their federal income taxes and may be deductible from state taxes. 401k plan contributions are made by payroll deduction which is an easy, convenient way to save.

Tax Deferred Dividends and Investment Earning Growth

Any gains from dividends or investment earnings grow tax deferred. For investors saving for their retirement this can mean many years of tax deferred growth. Tax deferral can have a powerful effect over time to increase funds available for retirement.

Flexibility

Within 401k plan guidelines, employees can decide how much they would like to save and can increase, decrease or even stop their contributions. If an employee changes jobs they can transfer via a 401k rollover or they can choose to transfer it to their new employer's 401k .

Diversification

In many 401k plans there are between 10-20 mutual funds ranging from conservative bond mutual funds to aggressive growth stock mutual funds to accommodate investors of different ages and risk tolerances.

Learn more about how an employer benefits from a 401k.

   Need Help or Advice?  |  Open a 401k Plan

Disclosures:

*  The information on this page is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice. To determine your individual tax situation and specific needs, please consult a professional tax advisor.

* Information contained in these sections merely highlight some benefits. There are risks involved with all investments that could include tax penalties and risk/loss of principal.