article thumbnail

Traditional vs. Roth 401(k) and how best to leverage an HSA

Employee Benefit News

Cash flow, tax bracket and timing of distributions will determine whether pretax or post-tax treatment of retirement savings makes more sense.

article thumbnail

Roth 401(k) vs. Roth IRA: What Is the Difference?

Patriot Software

Two common retirement plans for employees are individual retirement arrangement/account (IRA) plans and 401(k) plans. Maybe you are considering establishing a Roth, or post-tax contribution, retirement plan. What is the difference between Roth IRA […] READ MORE.

401(k) 98
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What is a 401(k) Plan and How Does it Work?

HR Digest

It allows employees to save a portion of their pre-tax income for retirement. How does 401(k) work? Here’s how it works: When an employee enrolls in a 401(k) plan, they choose a percentage of their salary to contribute to the plan, up to a certain limit set by the Internal Revenue Service (IRS).

401(k) 64
article thumbnail

5 Emerging Benefits Trends to Look for in 2025

Best Money Moves

The average employer matches 6% of an employee’s Traditional 401k and Roth 401k contributions. Creative solutions (such as student loan debt assistance and tax-advantaged health savings accounts) may be the key to supplementing your current retirement benefits. These benefits trends will continue going into 2025.

article thumbnail

Roth IRA vs 401(K): Which Should You Choose?

HR Digest

First up: Roth IRA contributions. What is a Roth IRA? A Roth IRA is an individual retirement account (IRA) that allows you to invest pre-tax money, which means that any money you put into it isn’t taxed until you withdraw it — at which point it comes out tax-free. What is a 401(k) plan?

401(k) 52
article thumbnail

Introduction to 401(k)s for small businesses

Business Management Daily

With a 401(k), employees can elect to have a percentage of each paycheck deposited directly into an investment account. These funds may be deducted on a pre-tax basis depending on the type of 401(k) plan. There are some tax credits that can help offset the initial costs of offering a 401(k).

401(k) 52
article thumbnail

Learn from payroll year-end mistakes or repeat them

Business Management Daily

Executive compensation committee: 20% excise tax on golden parachute payments, income from the exercise of nonstatutory stock options and nonqualified deferred compensation.