The 401(k) plan is an employer-sponsored qualified retirement savings plan. It allows employees to save for retirement while deferring any immediate income taxes on the money saved or their respective earnings until withdrawn.

401(k) plans must be sponsored by an employer, typically a private sector corporation, but self employed individuals can set them up also. The employer acts as a plan fiduciary and is responsible for creating and designing the plan as well as selecting and monitoring plan investments. In practice, nearly all employers outsource all of this work to one or more financial services companies, such as a bank, mutual fund, third party administrator, or insurance company.

If you would like more information, please Contact Us.