The 401(k) is the backbone of our retirement plans business.
The traditional 401(k) is the most popular employer-sponsored retirement plan for private companies.
Variations include: Safe Harbor 401(k) – allows highly compensated employees to contribute the maximum amount New Comparability – offers different benefit structures for different groups within a business. SoloPlus – a simplified 401(k) design for small business owners. Cash Balance – a hybrid of a traditional pension plan and a 401(k) that allows substantially higher contributions.
These plans allow employees of states, municipalities, political subdivisions or agencies to save for retirement without paying income taxes on contributions or on any earnings until they are withdrawn.
Types of plans include: 457(b) – a deferred compensation plan available for state or local government employees. 401(a) Money Purchase – a plan that provides a specific level of contribution annually. 414(h) – a plan that allows you to contribute on a pre-tax mandatory contribution basis.