Retirement Plan Consultants (TPA Services) in Rochester, NY

401(k) Plans in Rochester, NY

Here at The Pension Service, we understand Retirement Plans and the importance that they play within your company; for both you and your employees. TPS Group works with businesses like yours to help achieve long-term success. The Pension Service will help you design a 401(k) Program that your employees can easily understand and feel confident participating in.

Setting up a 401(k) Retirement Plan is a smart way to provide for one of your key assets – your people – as well as benefitting you and your business

 

What is a 401(k) Plan?

A 401(k) is a feature of a qualified profit sharing plan that allows employees to contribute a portion of their wages to individual accounts. A Traditional 401k Plan is sponsored by an employer and it lets workers save and invest a portion of their paycheck before taxes are taken out up to IRS prescribed limits. These taxes are not paid until the money is withdrawn from the account at retirement or other distributable events.   

 What is a Roth 401(k) Plan?

A Roth 401(k) is an increasingly popular option within a 401(k) plan that represents a combination of features of the Roth IRA and a traditional 401(k) plan. In a traditional 401(k), you contribute income pre-tax, and then pay taxes on the funds when you withdraw them during retirement. By offering a Roth 401(k) option, employees can elect to pay the taxes upfront allowing them to make withdrawals tax-free during their retirement. Under the Roth 401(k), employees may contribute funds on a post-tax elective deferral basis, in addition to, or instead of, pre-tax elective deferrals under their traditional 401(k) plans.

Why Offer a 401(k) Plan?

 

By providing a retirement plan such as a 401(k) Plan you can achieve greater stability for your company in Rochester, NY, while helping your employees meet their long-term financial goals come time for retirement.  Offering a quality retirement benefit plan, such as a 401(k) Plan, can help you attract and hold onto the best talent within your company and strengthen your business.  A 401(k) plan can make your company more competitive, show your employees that your care about their financial future. Employees satisfied with their benefits are going to be happier workers. 

Invest in Your Own Retirement 

You can invest money for your own retirement in the plan you set up for your employees in Rochester, NY. A retirement plan may have these benefits for you and your employees:

• Potential growth of your investment earnings that’s tax-deferred until you take a withdrawal or distribution
• Reduction of your income tax liability
• Employer contributions are tax deductible to the employer
• As an owner you are also eligible for company matching or nonelective contributions 

Safe Harbor 401(k) Plans

Many company owners actively seek to maximize their 401(k) contributions each year. That’s a great goal, but it can be problematic if your plan fails to meet the nondiscrimination rules. Adding a Safe Harbor provision can confidently address this issue while providing important benefits to your company and employees.

In this video, you’ll learn how Safe Harbor contributions work and four benefits of adopting this plan provision. Give us a call if you’d like to learn more about how Safe Harbor contributions can help make your plan more successful.

Choose a Plan That Suits Your Business

There are many types of retirement plans available. A 401(k) plan may be exactly what your business is lacking. Each retirement plan has its own benefits, features, levels of complexity and costs. Some are designed for large companies; others, for smaller enterprises. TPS Group is here to help you choose a plan that is tailored to meet the needs of your business. 

There are a lot of components to 401(k) plans that an employer must consider. TPS Group is here to help make those decisions easier by providing you with the expertise and the information you need. Whether you're looking to establish new retirement services, such as a 401(k) Plan, or revise your company’s current plan, TPS Group can walk you through the options. Our process is designed to be easy to understand and implement. 

For more information about 401(k) Plans in Rochester, NY & surrounding areas, Contact Us Today.

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Frequently Asked Questions

What is a 401(k) Plan?

A 401(k) is a feature of a qualified profit sharing plan that allows employees to contribute a portion of their wages to individual accounts. A Traditional 401k Plan is sponsored by an employer and it lets workers save and invest a portion of their paycheck before taxes are taken out up to IRS prescribed limits. These taxes are not paid until the money is withdrawn from the account at retirement or other distributable events. 

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What is a Roth 401(k) Plan?

A Roth 401(k) is an increasingly popular option within a 401(k) plan that represents a combination of features of the Roth IRA and a traditional 401(k) plan. In a traditional 401(k), you contribute income pre-tax, and then pay taxes on the funds when you withdraw them during retirement.

By offering a Roth 401(k) option, employees can elect to pay the taxes upfront allowing them to make withdrawals tax-free during their retirement.

Under the Roth 401(k), employees may contribute funds on a post-tax elective deferral basis, in addition to, or instead of, pre-tax elective deferrals under their traditional 401(k) plans.  

Resources

401(k) and Retirement Plan Limits for the Tax Year 2024

401(k) and Retirement Plan Limits for the Tax Years 2018 through 2024.

Internal Revenue Service (IRS)

• Federal tax laws, rules and forms
• Businesses and individuals
• Independent contractor rules for IRS

U.S. Department of Labor (DOL)

• Federal wage and hour law
• Exempt and non-exempt employee status
• Compliance assistance
• Independent contractor rules for DOL

Employee Benefits Security Administration

Benefit plan compliance and assistance (health and retirement) COBRA HIPPA

U.S. Bureau of Labor Statistics (BLS)

Labor statistics & wage data