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One popular way to get your retirement plan sorted in the United States is through a 401(k) plan. A 401(k) plan is a type of retirement account offered by employers to their employees. It allows employees to save a portion of their pre-tax income for retirement. How does 401(k) work?
If you have staff with health savings accounts, they still have until April 15 to make additional contributions to their accounts if they want to reduce their tax bills for last year. HSAs allow your employees to put away funds to pay for future medical expenses. Withdrawals to reimburse for these expenses are also not taxed.
High deductible health plans (HDHPs) are on the rise as a growing number of employers turn to consumer-directed health plans to try to curb costs—the portion of employeesenrolled in HDHPs rose from 26.3% Treat the HSA More Like a 401(k) than an FSA. This is even better tax treatment than the typical retirement plan!
One of the most difficult aspects of annual open enrollment is reaching workers who are disengaged from the process and never bother signing up for your group health plan and other benefits they could take advantage of. These accounts can be kept for life and transferred to new employers.
, has a number of important repercussions for any business that administers a 401(K) (or has thought of doing one, but always felt that it wasn’t financially feasible). When it comes to safe harbor 401(K) plans, the legislation eliminates the annual safe harbor notice requirement. This bill has you covered!
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