401 (K) plans are a highly desirable employee benefit. They help the valued members of your team to build their financial futures with minimal effort.

A 401 (K) plan refers to a program in which employees make periodic contributions to a retirement fund directly from their paychecks. Their employer has the option of matching their contributions.

Employer-sponsored 401 (K) plans provide employers with a low or no-cost way to prepare for retirement. It can be overwhelming for an individual to parse through the multitude of benefits available on the market, and employer-sponsored programs take the legwork out of the process.

401 (K) Benefit Plans Provide Tax Advantages For Your Business

Thanks to the SECURE (Setting Every Community Up For Retirement) Act passed in 2019, small businesses and companies with fewer than 100 employees can be eligible for significant tax credits when they implement 401 (K) plans for their employees.

In addition, if your company chooses the automatic enrollment option for its 401 (K) plan (meaning employees must choose to opt-out), you may be eligible for further tax credits. Not just limited to newly-implemented 401 (K) plans, companies that choose to add an automatic-enrollment feature to an existing 401 (K) program may also be eligible for such credits.

If your company or business has more than 100 employees, you may still be able to deduct 401 (K) administrative fees as business expenses.

401 (K) Benefit Plans Make Your Employees Feel Valued

By providing your employees with 401 (K) plan options, you empower them to invest in their futures. In today's economic climate, many Americans feel unable to even think about the future, as they are so focused on their immediate financial difficulties.

The straightforward act of offering the option of a 401 (K) plan sends a powerful message about how much you value your employees and wish to ensure their long-term financial health.

401 (K) Benefit Plans Draw The Best Possible Talent To Your Team 

Employees today have options. If your business or company does not offer a substantial benefits portfolio, you risk losing out on talented, qualified candidates. You also risk losing existing employees to companies that offer more.

High employee turnover is problematic in every area of your business. It costs you time, productivity, morale, and, of course, money. Benefits programs, including 401 (K) options, have proven vital to attracting great employees and increasing overall retention.

401 (K) Benefits Plans Have Many Ins-and-Outs

Employee Retention Benefits Inc (ERB) serves LA County, Pasadena, and surrounding areas. Our mission is to help you narrow down the best possible 401 (K) benefit plan options for your team.

We are committed to maintaining our position as the number one employee benefits firm on the West Coast. To discuss 401 (K) rules and regulations for your LA County business, contact us today.