401(k) Retirement Plans
A 401(k) plan is a low-cost means of providing visible and appreciated retirement benefits to your employees. It is one of the least restrictive retirement investment programs for companies today.
The 401(k) plan provides a number of advantages to both employers and employees including:
A 401(k) plan presents a wonderful opportunity for your employees to actively participate in investing for their retirement on a pre-tax basis. Providing a company-sponsored 401(k) allows your employees' money to grow and compound tax-deferred until withdrawn, typically at retirement.
A 401(k) plan offers your employees a great deal of flexibility and choice including whether or not to defer, how much to defer, where to invest, and when to change the deferral amount of investments. A 401(k) plan can provide benefits to meet very different employee objectives, and as an employee's circumstances change, different choices can be made to adjust.
The 401(k) can help you address your employees' pressures for additional cash compensation without significant added cost. Providing a company matching contribution may help increase employee participation in your 401(k), and encourage pre-tax employee investments.
As an employer, you can establish a vesting schedule and limit eligibility for your 401(k) plan.
For more information on establishing a 401(k) plan, visit wellsfargo.com.