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While it’s not really your job to make sure your employees are saving for retirement, having a 401(k) plan among other benefits can help you both. Giving birth to a 401(k) is like giving birth to a baby. Just a 401(k) plan as a benefit is a good thing. A 401(k) matching program is a budget item.
When an employee is worried, unproductive and can’t afford to participate in group activities and outings because of finances, it not only affects the person but the team as a whole. Make a 401(k) plan available to them. When you offer a 401(k) plan, your employees will feel more assured about their future.
When choosing a professionalemployerorganization (PEO), there is an entire checklist of items you should consider to make sure you choose a partner that is a good fit for you. Not realizing the importance of details related to finances, payroll, and taxes presents one of the biggest risks for growing companies.
In a 401(k) plan, the most common type of retirement plan, employees can save up to a certain amount set by the U.S. Many employers match their employees’ contributions to boost their savings. See more information about how a professionalemployerorganization can help below.)
That’s a dramatic drop in a very short time—a 71% decline since 1979, when about four in 10 workers could count on receiving a monthly check directly from an employer-funded pension when they retired. Almost all American workers now depend on defined-contribution plans such as 401(k)s and 403(b)s to fund their retirements.
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