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401(k) Plans

Benefits and Overview

• 401(k) plans may be used by businesses of any size. The most appropriate  business for these types of plans usually have twenty five or more employees.
• Employees may contribute up to $13,000.00 or up to 100% compensation, whichever is less on a pre-tax basis to the plan.
• Employees are always 100% vested with respect to employee contributions.
• Employers may establish a vesting period for employer sponsored contributions.
• Total contributions limited to $40,000.00 (employee and employer contributions).
• Employer contributions are totally optional with 401(k) plans.
• Loans and hardship withdrawals are permissible.
• Top heavy and discrimination testing must be done in order to keep the plans in compliance.
• Requires government reporting (IRS form 5500)

There may be  more concerns that may not be addressed  in the highlights and description of 401(k) plans. If you have additional questions on the installation of a new 401(k) plan for your business or are dissatisfied with the results of your current 401(k) plan  please feel free to contact us.