4 Benefits that a 401K account offers you

1

Attract and retain talent

Retirement benefits are becoming increasingly important to employees.

2

Tax credits

The SECURE Act allows an eligible small business to claim a tax credit for adopting a new 401K plan.

3

Tax deductions

All businesses can claim a tax credit deduction for paying 401K-related expenses.

4

Incentive performance

A profit-sharing contribution may be allocated among 401K plan participants

What do you get with a 401 K

plan for your company?

1A customizable plan

2Business tax advantages

3Higher employee contributions than other plans offer

4Higher employee contributions than other plans offer

5Growth with tax advantages.

What is a 401K and how can it help you as an entrepreneur?

A 401(k) is a retirement savings plan that an employer sets up for its employees. In a standard 401(k), employees can defer a portion of their pay, before taxes, to the retirement savings plan. This way, savings are set aside before an employee can start spending. Employers can choose to match a percentage of the employee's contribution, helping them save more and creating an incentive to do so.

Assuming the employee leaves their money in a retirement savings account, they don't pay taxes on their savings until retirement, when the money is withdrawn.

A 401(k) is an important investment option for an employee. Your compounded growth is key to saving money for retirement. It can be offered at fairly minimal costs to your company, especially if you don't offer a company match.

Clearly, 401(k) plans are a great benefit to your team. These are our main reasons for offering a 401(k) as a small business.

How does a 401K account work at Advise Financial?

1 Opening of accounts and costs.

The opening process is completely free for the company and workers, we will guide them through the necessary steps and additionally we will open their SEP - IRA accounts for workers.

2 Determine Investor Profile of your workers

Advise Financial will help each worker to determine their investor profile and from Charles Schwab (the Seventh Investment Bank in the USA) we will make the investments for them, with tailor-made low-cost and highly diversified portfolios.

3 Our commissions

In our case, we only charge a commission of 0.90% per year of the balance that workers have in their individual retirement accounts, it is automatically charged and has no cost to the company.

Frequent questions:

1What types of businesses are 401K plans right for?

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

2 What are the tax advantages of a 401K business plan?

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

3How are 401K plans for companies financed?

Employees can withdraw their money to withdraw their money like any other traditional IRA account, at 59 and a half years of age, at which time they will pay taxes for the withdrawals they make, if they need the money before, they must pay additionally imposed a penalty of 10%.

4What are the contribution limits?

Employees can make an elective salary deferral of up to $20,500 for 2022 and $22,500 for 2023 ($27,000 for 2022 and $30,000 for 2023 if age 50 or older). Employers may make tax-deductible contributions of up to 25% of the participant's compensation, provided the combined employer and employee contributions do not exceed $61,000 for the 2022 tax year and $66,000 for the 2022 tax year. 2023 ($67,500 for 2022 and $73,500 for 2023). if you are 50 or older).

For more information, please schedule an appointment with us without obligation.

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