Companies who sponsor a 401(k) may benefit from the following:
- Increased retirement security for owners
- Increased retirement security for employees
- Potential tax advantages
You don’t need to be a 401(k) expert to help your business reduce its tax liability through potential tax credits. It’s as simple as contacting us. We work with businesses from start to finish to implement a 401(k) plan that may offer the following benefits:
- Tax credits: Business clients starting a 401(k) for the first time might be eligible for a tax credit of up to $5,000 each year for the first three years. For more information, visit irs.gov, or contact a certified tax professional.
- Annual tax deductions: Offering a company match as part of the 401(k) benefit means that the business owner(s) and the employees can more quickly build retirement savings. It also means that the business can take tax deductions for matching contributions along with plan administration costs, within IRS limits.
- Salary deferrals and contributions: Plan participants can make regular, automatic contributions totaling up to $20,500 in 2022 in any combination of pre-tax or Roth post-tax dollars. The maximum contribution amount is $27,000 annually for plan participants starting in the year they reach the age of 50.
- Reduced tax liability: Amounts contributed pre-tax are not reported as taxable income until they are withdrawn. These pre-tax dollars invested in a 401(k) can accumulate earnings tax-free until funds are withdrawn. Any earnings on post-tax Roth funds can be withdrawn tax-free if taken as part of a qualified distribution.
If you have a business, it might be time to sponsor a 401(k). Complete this simple form and a member of our team will get back to you right away.
At the Printers 401k®, we believe with the right plan design, we can create successful retirement outcomes for your business and employees. Please feel free to reach out to me at email@example.com or 800.307.0376.
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. Investment Advice and 3(38) Investment Fiduciary services offered through Diversified Financial Advisors, LLC, a Registered Investment Advisor. 3(16) Administrative Fiduciary Services provided by PISTL Service Corporation. Discretionary Trustee services provided by Printing Industries 401k Trustees. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.