A Detailed 401(k) Resource Guide

A Detailed 401(k) Resource Guide

Produced by VastSolutionsGroup.com in cooperation with the Employee Benefits Security Administration

Why 401(k) Plans?

401(k) plans can be a powerful tool in promoting financial security in retirement. They are a valuable option for businesses considering a retirement plan, providing benefits to employees and their employers.

Employers start a 401(k) plan for many reasons:

• A well-designed 401(k) plan can help attract and keep talented employees.
• It allows participants to decide how much to contribute to their accounts.
• Employers are entitled to a tax deduction for contributions to employees accounts.
• A 401(k) plan benefits a mix of rank-and-file employees and owners/managers.
• The money contributed may grow through investments in stocks, bonds, mutual funds, money market funds, savings accounts, and other investment vehicles.
• Contributions and earnings generally are not taxed by the Federal Government or by most state governments until they are distributed.
• A 401(k) plan may allow participants to take their benefits with them when they leave the company, easing…