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July provides custom plan design to meet your goals.
Click below to let us design a plan for you.
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401(k) Plans
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401(k) plans have become one of the most popular employee benefits offered in
America today. They make it easy and convenient for employees to save, while
providing tremendous tax savings to both employers and employees.
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PLAN DESIGN
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401(k) plans can be designed with flexible features, such as
eligibility, vesting,
participant loans,
and a variety of distribution
options. With
proper plan design, they can reduce costs by helping companies recruit and
retain employees.
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CONTRIBUTION OPTIONS
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WHY CHOOSE A 401(k) PLAN ?
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| Great Retirement Savings Tool.
401(k) plans are a disciplined and convenient way to help employees save,
allowing them to plan for a secure retirement. |
| Employee Recruitment & Retention.
401(k) plans have become one of the most popular employee benefits offered by
companies today. Because of this, it has become a very important tool in
helping to recruit and retain employees. |
| Tax Savings.
401(k) plans offer tremendous tax savings to both employers and
employees. Employers receive tax deductions for making contributions, and
employee salary deferrals are made before federal income taxes are
withheld. All contributions grow on a tax-deferred basis.
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IMPORTANT CONSIDERATIONS
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| 401(k) Plans may become top heavy.
Before adopting a 401(k) plan, it is important to consider the impact of the
top heavy rules. 401(k) plans that become
top heavy require
employers to fund a mandatory top
heavy minimum contribution to the
non-key employees. |
| Nondiscrimination Testing Required.
401(k) plans are required to pass the
ADP Test and
ACP Test
annually. Plans with low participation from
non-highly compensated employees
are at risk of failing this test. To correct a failed test, the plan can
either make
corrective distributions
to
highly compensated employees
or make
QNEC contributions
to non-highly compensated employees.
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| Plan Administration.
While 401(k) plans offer many important benefits to employers and participants,
they are a long-term commitment that should be taken seriously. Employers
should become familiar with their duties as
Plan Administrators
and
fiduciaries before
adopting a 401(k) plan. |
| Controlled Group Issues. Employers
are required to comply with specialized
controlled group
rules for certain
affiliated employers
when adopting or sponsoring a 401(k) plan. Employers should
carefully consider the impact of these rules before adopting a 401(k)
plan. |
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PAYROLL SERVICES
July offers complete payroll outsourcing, including direct deposit, complete tax management services, and full integration with your retirement plan. A single provider for retirement and payroll services reduces your work load and increases satisfaction.
RESOURCE CENTER
The plan resource center provides helpful access to important
information including plan limits, plan features, terminology, and tips to avoid mistakes.
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