Western Retirement Plan Program

401(k)

Reduce Taxes, Increase Retirement Savings

When a small business offers a 401(k) plan, it’s often a win-win for business owners and employees. A 401(k) plan can help businesses attract and retain talent, incentivize performance, and lower taxes, while helping employees and the business owner meet their retirement goals.

If you’re a business owner, you have probably asked yourself at some point what you and your employees stand to gain by offering a 401(k) plan. The answer is probably a lot. Here are some of the top benefits:

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Tax-Advantaged Savings

A 401(k) plan can permit both pre-tax and after-tax contributions. Each contribution type offers different tax advantages.
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Higher Contribution Limits

A 401(k) plan offers higher annual contribution limits than IRAs — which includes SIMPLE IRAs. The higher limits can help participants save at a faster rate and retire sooner than IRA accountholders.

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Attracting and Retaining Talent

Retirement benefits are becoming increasingly important to employees. Many studies have found that workers said a retirement plan was a critical factor in deciding whether or not to accept a job, while an overwhelming majority of workers find a retirement plan to be a critical factor in staying with a job.

In short, a 401(k) plan can be a powerful tool for employers to attract and retain employee talent.

How Much Fiduciary Support Do You Need?

For most small businesses, the plan fiduciary is often the owner, CEO, CFO, or HR Manager. Choosing an adviser who acts as a fiduciary or co-fiduciary to your plan will reduce your personal liability by delegating some of your legal responsibilities. There are two main types of advisers when it comes to fiduciary status, each of which delivers a different level of fiduciary support and protection.

Fiduciary Responsibility 3(21) Investment Adviser 3(38) Investment Adviser
May educate regarding plan investment options
Recommends plan investment options
Selects plan investment options
Monitors plan investment options
Updates plan investment options

Receive a Free Plan Analysis

Schedule a free call with a retirement plan specialist to discuss your current or future plan and receive a complimentary plan analysis or proposal.
Steven Levenson - Financial Adviser at Western Financial