Considered an ideal savings plan by many financial experts, 401(k) plans have become increasing popular over the past several decades.  They give employers a flexible solution to help employees save for the future, and they give an employee a way to save for retirement while deferring income taxes on the saved money and earnings until withdrawal.

Benefaction helps employers with several different types of 401(k) plans.  Our goal is understand your company’s unique needs now, and as those needs may change at each stage of your company’s development.  We help employers with the following types of 401(k) plans:

• Traditional 401k
• Safe Habor 401k
• Profit Sharing 401k
• Roth 401k

Here’s how a 401(k) plan typically works.

The employee elects to have a portion of his or her wage paid directly, or “deferred”, into his or her 401(k) account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasizes stocks, bonds, money market investments, or a mix of the above.

Many companies’ 401(k) plans also offer the option to purchase the company’s stock. The employee can generally re-allocate money among these investment choices at any time. In the less common trustee-directed 401(k) plans, the employer appoints trustees who decide how the plan’s assets will be invested.