Statistics show that 401k plans have become the primary source of retirement savings for U.S. workers and help companies compete for top talent.
A 401k plan is a critical part of an employer’s overall benefits program and minimizes the chance that employees seek jobs with better benefits.
401k plans allow owners and employees to elect pre-tax or Roth salary deferrals, and create a disciplined, tax-favored approach to savings—both are available options.
401k plans reduce income taxes for employees and the company. Employer contributions are tax deductible and employees elect pre-tax or Roth tax treatment – each providing special tax benefits.