Tag Archives: 401(k) Profit Sharing Plans

401(k) Profit Sharing Plans Provide Great Flexibility

A traditional 401(k) Plan allows an employee to save for retirement through a 401(k) salary reduction plan, have the savings invested, and defer current income taxes on the saved money and earnings until withdrawal. A Profit Sharing Plan is an employer funded, discretionary plan that can provide benefits to owners and their employees based on the company’s profitability. These two plans coupled together, called the “401(k) Profit Sharing Plan”, can be a nice tool to flexibly save for owners’
retirement through the 401(k) portion of the plan and to recruit and retain good employees.

Continue reading

Posted in Tax and Money Tip of the Week | Tagged , , , , , | Leave a comment