A retirement plan an employer sponsors allows employees to save and invest for their own retirement on a tax-deferred basis. Employers may make matching or nonelective contributions to the plan on behalf of eligible employees and may also receive favorable tax treatment. 401(k)s are increasingly becoming a popular method to grant employees financial freedom into retirement, with a lower risk profile.
What is a 401(k)?
A 401K plan is an employer-sponsored retirement savings plan allowing employees to contribute a portion of their paycheck into a tax-deferred savings account. 401K plans are one of the most popular retirement savings vehicles in the US and for good reason. A 401(k) is a retirement savings plan helping employees to contribute a portion of their paycheck to an account that can be used later in life. The money in the account grows tax-deferred, meaning taxes are not paid on the growth until the money is withdrawn. Employers sponsor 401(k) plans, and many employers will match a certain percentage of employee contributions. This makes 401(k)s an attractive option for employees looking to save for retirement. There are some restrictions on how the money in a 401(k) can be used, but overall they offer a great way to save for the future.
How 401(k)s Can Help Police Departments
For police departments, a 401K plan can be an invaluable tool in attracting and retaining officers. In an increasingly competitive marketplace for law enforcement professionals, a solid benefits package can be the difference between hiring the best and brightest or losing them to another department. In addition, employees who participate in a 401K plan can take advantage of some significant tax breaks. Contributions are made with before-tax dollars, which means they’re not subject to income taxes. In addition, earnings on those contributions grow tax-deferred until they’re withdrawn at retirement (when they may be taxed at a lower rate). Many employers also offer matching contributions, which also aren’t subject to taxes. As an employer, you may make matching or nonelective contributions to the plan on behalf of eligible employees. This is a great way to help members of police departments strive for a stable future and have peace of mind knowing they will have money set aside when they retire.
Access Top 401(k) Options for Your Police Department
If you’re looking for a way to attract and retain top talent at your police department, offer them a 401k! At Employee Retention Benefits (ERB), we specialize in helping police departments set up 401k plans to meet the unique needs of their employees. We work with leading financial institutions to get you the best possible options for your employees. Our service partners include over 129 carriers across the United States who offer competitive financial programs like 401(k) for employers. We also have five decades of experience providing 401(k) benefits for companies in the Pasadena, CA, area, so we know how to approach implementation successfully. Contact us today to learn more about our competitive 401(k) options!
