One of the benefits of working for a company is the ability to participate in a group retirement savings plan, like a 401(k).
Benefits of Group Retirement Plans
Group retirement plans offer employees the opportunity to save for retirement on a tax-deferred basis. This means employees can contribute a portion of their salary into the 401(k) account before taxes are taken out. Then, when they retire and start withdrawing the money, they will only be taxed on the withdrawals (and not on the original contributions). This can provide the benefit of a lower overall tax bill.
In addition, most employers offer matching contributions. This means you will contribute a certain percentage of your employee’s salary (up to a maximum amount) into their 401(k) account. This provides a boost to employee retirement savings, providing both a strong benefit to employees and improving long term employee retention.
Establishing a Group Retirement Plan
Our team is ready to assist you in building a group retirement plan for your employees that will improve morale and retention while remaining affordable for your enterprise. For details, schedule a consultation with our team by calling our offices at the number above.
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