401k Employer Advantages

Lower Cost and Tax Savings

In general, employer costs are lower in a 401k plan compared to other types of qualified retirement plans. Employer contributions to their own account are tax deductible. In most cases, if there is a "company match", contributions on behalf of employees are also tax deductible to the business.

Employee Appreciation

Employees appreciate that their employer is providing a way for them to save for their retirement. Also, when employees save for their retirement they feel more secure regarding their future and may be less inclined to change employers.

Employee Attraction and Retention

Today an employer may have to offer a 401k plan in order to compete for certain job applicants. In fact, if an employer doesn't offer a 401k it may serve as a factor for an employee not accepting one job offer and accepting another. The popularity of 401k plans is a significant factor in attracting and retaining valuable employees. Learn more about BCM's 401k retirement plan services here.

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Disclosures:

*  The information on this page is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice. To determine your individual tax situation and specific needs, please consult a professional tax advisor.

* Information contained in these sections merely highlight some benefits. There are risks involved with all investments that could include tax penalties and risk/loss of principal.