401k Plans

401k Plans

For any type of public or private company. 401k plans are generally most appropriate for companies with 20 or more employees.

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PLAN DETAILS

401k Plans

For entrepreneurs and businesses of all sizes, we deliver asset management and investment advisory services to help them meet the demand for low-fee investing. With a 401(k) plan, employees can typically make larger salary deferrals than with other retirement plans, and your business gets tax benefits.

  • Retain valuable employees who want retirement options in their benefits package.
  • Higher employee contributions than other plans offer
  • Optional employer-matched contributions
  • Attract talented people in today’s challenging job market.
  • Enjoy tax advantages that may be available to you as an employer offering the plan.
Key facts and details

Eligibility

A 401(k) plan is suitable for a company of any size that is looking for a retirement solution that allows high levels of salary deferrals by employees. Plans are generally offered to all employees at least 21 years of age who worked at least 1,000 hours in the previous year.

Tax Benefits

Employee contributions are generally made with pre-tax dollars, although some 401(k) plans feature after-tax Roth contributions. Earnings grow tax-deferred.

Who contributes

The plan is funded with elective employee salary deferrals and optional annual employer contributions. The plan does not need to be funded annually. Employer contributions are tax-deductible up to 25% of participant compensation. Employee salary deferrals are fully vested immediately, while employer contributions vest according to plan terms.

Contribution amounts

Contributions amounts are determined by the IRS. See Retirement Topics – 401(k) and Profit-Sharing Plan Contribution Limits for current information.

Withdrawals

Cannot take withdrawals from the plan until a “trigger” event occurs, such as turning age 59½, disability, or death. 10% early withdrawal penalty applies if you are under age 59½ and taking a distribution. Required minimum distributions start at age 72.

Fees

Fees vary and are based on business needs and solutions. Global Advisers charges an annual management fee. Other account fees, fund expenses, and brokerage commissions may apply.

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