Giving to your employees is one of the greatest ways to keep the hardworking, skilled individuals at your business working for you. Providing them with group health insurance and employee benefits is essential if they are to protect themselves from illness and prepare for their future after retirement. That’s why the percentage of California companies that offer group 401k plans has increased significantly in the passing years.
A group 401k plan is substantially more beneficial than having an IRA. IRA has stricter annual caps which make it impossible to contribute as much as you could through a flexible 401k plan. Up to $18,000 of pretax earnings can be invested into your group 401k plan annually. Only $5,500 can be contributed into an IRA.
While choosing a group 401k plan for your company, you’ll notice that there are several different plans. Some of these plans are more flexible than others, so it’s important to know exactly what type of plan you choose. While most 401k plans will let you make pretax contributions, some of them carry penalties which could lessen the amount of money an employee has invested into their 401k plan. Other plans will allow the employee to roll their 401k investments into another qualified plan or IRA.
To learn more about California group 401k plans, contact Taylor Benefits Insurance Agency. Our insurance brokers have a large network of insurance carriers to work with throughout the state. For nearly 30 years we have been in the industry which has made it possible for us to modify plans and even negotiate costs and premiums. Give us a call at 800-903-6066 for more information about the different 401k plans and we’ll even provide you with a FREE quote! We look forward to your call!
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