a very important benefit

Regardless of whether you plan for your retirement via IRAs (no employer involvement) or through a 401K program, you should plan for your retirement. Contributions to both IRAs and 401K programs within IRS limits are tax advantaged.

Of course, the most popular type of pension plan is a 401K plan. These plans allow the employee to take an active role in planning for their retirement and to manage their investment selections and associated risk via the convenience of payroll deduction. For the employer, 401k plans allow discretionary profit sharing contributions and the flexibility of matching employee contributions.

All 401K plans are tested to determine whether the plan favors the highly compensated. The testing can result in the highly compensated being restricted in how much they can contribute to their 401K. An employer match might be required so the plan passes discrimination testing and the highly compensated can contribute to the 401K limit.

A well-designed 401K plan will serve your employees for a long time. Employers should be aware of the fixed costs required to operate the plan, as well as the expense component of the funds offered plus associated wrap fees. Benefit Consulting Group will ensure that your employees receive the services they need, and that the overall cost to run your plan is very reasonable.

Retirement plans can be funded through IRAs (the individual) all the way to pension limits.