Easy, Affordable 401(k) helps employers Maximize their Benefits
By establishing a 401(k) with Equitable, employers will have the flexibility to contribute pre-tax dollars with or without matching contributions for their employees — as long as they have employees who participate. Employers also get a program that is easy and low-cost to establish and maintain. A 401(k) can also be a great tool for rewarding employees and increasing retention.
What makes 401(k) plans such a popular choice is the many sources where contributions can be made from, including:
- Pre-tax salary deferrals
- Discretionary employer matching
- Profit sharing contributions
- Eligible rollovers from employees previous retirement plans
Employers can encourage employees to participate by matching their contributions. Employers may reward them with profit sharing contributions based on a percentage of their salary — during years that they desire to make this contribution. In some cases, when a 401(k) plan is considered top heavy, eligible employees must receive minimum, unvested contributions.
Participating employees may contribute up to $19,500 each year to their 401(k), higher for employees (and employers) over the age of 50. See contribution limits here.
- Contribution Flexibility.
- Increased Contribution Limits
- Visible and Valuable Employee Benefit.
- Employees Manage Own Investments.
- Greater administrative requirements than a SIMPLE or Safe Harbor 401(k).
The ADA Members Retirement Program provides all the tools and services that employees need to manage their own investments. They have toll-free access to dedicated Retirement Plan Account Managers who are fully knowledgeable about every aspect of the program. Plus, plan participants have a full range of investment options to help them meet their goals.
Employer should consult with one of our Retirement Program Specialists to help determine if a Traditional 401(k) plan is right for their situation. And, if they wish, we can also arrange for them to receive a customized retirement plan proposal from an Members Retirement Program Specialist at no cost or obligation to them.