Retirement Plans Help Keep Employees

Good employees are very hard to find.  Keeping them means competing with other business who want to steal the good employees you have.

Retirement plans as part of an overall benefit plan can help stop employees from jumping ship.

Competitive base pay, medical insurance and a 401(k) plan are the must have benefits necessary to attract and keep talent in your company.

A 401(k) retirement plan demonstrates that you care about and value your employees and want to provide a means for them to plan for their future.

The 401(k) is the most flexible type of retirement plan. Employers can contribute to the plan for employees or your company can sponsor a plan to which only the employees contribute with salary deferral. The 401k plan may be most appropriate for companies with at least 10 employees.

401(k) Retirement Plans
401(k) plans are tax-deferred retirement savings plans for employees. The employer sets them up and each company has a slightly different 401(k). They are part of a family of retirement plans known as "defined contribution" plans - the amount contributed is defined by the employer or the employee.

When the employee joins a 401(k) plan, he tells the employer how much money he wants to contribute to the account. This amount is deducted from the salary before taxes are applied, so the employee pay less in income tax. More importantly, the money is deducted even before they have received it, making it the easiest savings plan to contribute to.

The employer may match a portion of the employee contribution. The money is invested by the plan administrator (on the employees behalf) in mutual funds, bonds, money market accounts, etc. In some cases the employee can decide the mix of investments. They usually have a list of investment vehicles that can be choosen from as well as some guidelines for the level of risk they are willing to take.

Since the plan is an incentive for retirement savings, there is one condition: if you withdraw the money before you are 59½ years old, you will have to pay tax as well as a 10% penalty fine to the IRS.

Interested in a 401(k) for your business?  Give the Bennett Insurance Group a call at 623-979-4140 and get answers tailored to your business.

Brought to you by:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com