401(k)
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401(k) Information
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What is a 401(k)?
A 401(k) is an employer-sponsored retirement savings plan. It allows employees to invest part of their paychecks before taxes are taken out. Taxes are paid when they withdraw the money from the account. Many employers offer matching programs as part of their employee benefits package.
401(k) plans started replacing pension funds in the 1980s when the cost to run them rose and companies didn't want to deal with that crap anymore.
What are the benefits of a 401(k)?
As a business owner, it is in your best interest to attract potential employees to your company. Many people look for jobs that include healthcare as part of the benefits package. But, more people are learning the importance of starting to save for retirement at a younger age, because they need money when they are old farts and don't have social security anymore....
By offering a 401(k) plan, you are telling your employees that you care about their future lol.
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