There are some obvious advantages to offering your employees a group 401(k) plan. For one, it helps your business to attract and retain the best available workers, as well as providing potential tax breaks for your business.
Employee benefits are quickly becoming the fine line that separates every other job opportunity from the most desirable positions and employers have started to take notice. This change is especially evident among small businesses: only 10% of them offered a 401(k) plan to employees in 2008, compared to 25% in 2013.
Under a qualified 401(k) plan, employees can contribute several times more than they can through an IRA due to the yearly contribution caps. With a group 401(k) plan, employees may contribute up to $17,500 in pretax earnings to be invested, as compared with only $5,500 through an IRA. If you decide to offer an employer match or contribution, that limit goes even higher, creating more investment opportunity for your workers.
Curious why more small businesses don’t offer a group 401(k) plan? Read this article to find out about the three misconceptions that keep employers from offering a group profit sharing plan.
One of the benefits of a group 401(k) plan is that you have tremendous flexibility over the details of the plan. You can choose a plan that offers a lot of choice or go with something more simple and straightforward if you want to minimize administrative costs and time. The advantage of partnering with an independent agent like Taylor Benefits is that we can cater to the specific needs of your business and savings goals of your employees.
Curious how we can help? Call us today at the number at the top of the page to learn more about offering a group 401(k) plan! To get started with a FREE proposal right away, use our online request form at the top right!
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