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January 24, 2011
Office to open in New Orleans, LA
Valley Financial Corporation is now accepting resumes for our New Orleans, LA...
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January 3, 2011
New Office in Atlanta, GA
We are pleased to announce that we have opened another office in the Atlanta, GA region...
401kPhoenix, Arizona 401k Financial Services
More than likely these are familiar to anyone who has worked for a large company. But many smaller businesses also find that a 401(k) is an appropriate retirement option for their company. A 401(k) program may be a good benefit for companies with a mix of rank-and-file employees and owners/managers. It also offers participants a wider range of investment options. Started in 2006, you can set up the plan so that workers can designate some or all of their contributions as after-tax Roth investments, making qualified distributions of such money tax-free.
What are the requirements?
- Creating a written plan for the administration
- Establishing a trust fund for the plan assets
- Adhering to more strict record keeping requirements
- Adhering to fiduciary responsibilities and duties
Because of these and other administrative requirements, companies usually contract with an outside firm to handle some or all of the of a 401(k) plan's operational aspects. Solo(k)’s are also are available to sole proprietors.
- Provide for employer matching which gives employees incentive to participate
- Employers can establish “vesting” schedules which may help increase employee retention
- It allows participants to decide how much to contribute to their accounts on a before-tax basis
- Employers are entitled to a tax deduction for their contributions to employees’ accounts
- A 401(k) plan benefits a mix of rank-and-file employees and owner/managers
- The money contributed may grow through a wide range of investment choices
- Contributions and earnings generally are not taxed by the Federal government or by most State governments until they are distributed (traditional 401(k))
- A 401(k) plan may allow participants to take their benefits with them when they leave the company, easing administrative burdens
Because selecting the right retirement plan is important to you, your company and your employees, we invite you request information and to consult our professionals. We'll work with you to help find a plan that is suited for your company. If you are unsure as to why a company plan may be right for your company.
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