401(k)

A 401(k) is a type of retirement plan that allows employees to save and invest for their own retirement.

Plan Sponsor Advantages: 401(k) plans

  • Are mostly funded from dollars paid as salary.
  • Let you deduct your contributions from taxes as a business expense.
  • Help recruit and keep quality employees.
  • Help members build retirement security.

Employee Advantages: A 401(k) plan allows employees to

  • Save through easy payroll deduction.
  • Choose the amount they want to save.
  • Change the amount saved to meet current needs.
  • Reduce their taxable income.
  • Defer taxes on the amount saved and its earnings until the members receive benefits from the plan.

Plan Options
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