401(k) plans
A 401(k) is one of the most common qualified retirement plans. With both traditional and Roth options, a 401(k) plan allows employees to put away money by making salary deferral contributions.
A qualified retirement plan is an employer-sponsored employee benefit that provides retirement plans for eligible employees. When a plan meets these requirements, the business establishing the plan and the employees benefiting from the plan are entitled to special tax benefits.
There are two types of qualified retirement plans: defined benefit and defined contribution plans. Defined benefit plans provide a guaranteed payout to employees determined by their length of service and salary earned at the time of retirement. Defined contribution plan savings, however, are determined by how much employees have saved and invested on their own behalf during their working years.
Employer Benefits
A 401(k) is one of the most common qualified retirement plans. With both traditional and Roth options, a 401(k) plan allows employees to put away money by making salary deferral contributions.
Ascensus’ Individual(k) plan is a qualified retirement plan and solution that offers a full range of support options to help small businesses start a 401(k) plan or manage existing plans.
Individual(k) is a trademark of Ascensus, LLC.
SEP and SIMPLE IRA retirement plans are great alternatives to profit-sharing or 401(k) plans for small business owners.