Retirement Savings at your Finger Tips
Why should I consider a 401(k) plan?
A 401(k) plan is an affordable way to build a retirement savings by making periodic contributions to a retirement savings account with each paycheck. After setting up your Sure401k, you can:
- Plan for your retirement with contributions amounts that you can afford.
- Provide your employees a retirement savings plan where they specify the amount to be deducted from their paychecks and the contributions are automatically invested in their 401(k) accounts.
Traditional 401(k) allows employees to save for their retirement through payroll-deducted contributions while providing employers the option to make additional contributions to their employees’ 401(k) accounts. The can also go over the required annual non-discrimination testing—developed to ensure 401(k) plans do not favor owners or highly compensated employees (HCE) more than other employees—HCEs and business owners may have limits imposed on their annual contribution amounts.
Safe Harbor 401(k) provides the same features as a Traditional 401(k) plan and bypasses annual non-discrimination testing. A Safe Harbor plan requires minimum annual employer contributions using either a matching formula or a fixed 3% annual contribution, like a SIMPLE plan.