About 401K Plans

A PRIMER ON 401(k)s

How a 401(k) Works

Employee 401k contributions are automatically deducted from their paycheck each pay period. The funds are taken out before the employees paycheck is taxed. The contributions are invested per the employees direction into one or more funds provided in the plan. Employers often match employee contributions, but are not required to do so. While the investments grow in the employees 401k account, they do not pay any taxes on it.

Why 401(k) Plans are so Popular

401k plans are popular with for several reasons. First, the tax deferral is high on this list of reasons. Other benefits include the increased portability of the plan, employer matching contributions, and the increased control associated with self-direction of investments.


401(k)s Can Play a Key Role in Helping You Meet Your Future Financial Goals

One of the best ways for you to save toward your own retirement and ensure your future security is through an employer-sponsored 401(k) plan. If you don’t participate, you’re missing a golden opportunity to save for retirement while lowering your tax burden on those savings.

Strategically Meeting your Financial Goals

Once your 401(k) plan is up and running, you’ll want to take the time to review your account one or two times a year to ensure your investment direction still aligns with your goals. You’ll also need to complete a relatively low-maintenance year-end checklist with your provider to ensure your plan is compliant with government rules and regulations. Other than that your 401k should operate smoothly and help you and your employees more strategically address and meet their financial goals.

Want more information on how to set up your 401k Retirement?


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or Call (949) 863-9870 and ask for one of our client 401k specialists.