401(k) Plans

401(k) Plans

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

401(k) Plans

 

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 These taxes are not paid until the money is withdrawn from the account at retirement or other distributable events.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?

Among many other benefits, providing a retirement plan such as a 401(k) Plan can help you to achieve greater stability within your company. Simaltaneously, it will also help your employees meet their long-term financial goals for retirement.  Studies show that by offering a quality retirement benefit plan, such as a 401(k) Plan, an organization will attract and retain the best talent for your company which will strengthen your business overall.  A 401(k) plan can make your company more competitive and show your employees that you 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. 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 in CT, 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 CT & surrounding areas, Contact Us Today.

Related to: Third Party Administrator, TPA, Pension Plan Design Consultant, Retirement Plan Consultant, 401k Plan Assistance, Retirement Plan Design, Actuarial Consulting, Pension Consultant, 401k Plan Consultant, Reirement Plan Integration, 401k TPA, Safe Harbor

401(k) Plans FAQs

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.  

Reviews

Highly impressed with their level of expertise and outstanding customer service.

Highly impressed with their level of expertise and outstanding customer service.

I highly recommend TPS Group and their quality third-party administration for our 403(b) plan. During our long relationship with TPS Group, we have never failed to be impressed with their level of expertise and outstanding customer service. They keep their promises and it’s easy to work with them. Having our own rep Lauren McNabb is a plus!

- Don Senecal

"Extremely Helpful to Our Business"

"Extremely Helpful to Our Business"

Malinda deserves special recognition. She is prompt, courteous, and professional. We find her to be extremely helpful to our business.

- Angela Simino

"Wonderful To Work With"

"Wonderful To Work With"

My go to professional is Des. A wonderful person to work with. We can count on him to handle all of our needs.

- Andrea Blakeslee

"Answers All Of My Questions In A Clear Manner"

"Answers All Of My Questions In A Clear Manner"

Our case administrator, Susan, has been absolutely wonderful and is a joy to work with. She is very knowledgeable, patient, answers all of my questions in a clear manner, and is professional.

- Kathy Townsend

Extremely Valuable to Myself and Our Company

Extremely Valuable to Myself and Our Company

Kathleen has helped me gather info and understand text so many times and is extremely valuable to myself and our company.

- Elizabeth Robison

Very Responsive And Clear To Requests And Questions

Our service representative, Carol, is outstanding and very responsive and clear to requests and questions. Very professional yet pleasant.

- Jane Surmecewicz

They are a pleasure to work with and we highly recommend their services.

They are a pleasure to work with and we highly recommend their services.

For many years we’ve relied on TPS Group’s extensive knowledge and industry expertise to keep us in compliance with state and federal regulations as well as changes in the law. Their attention to detail is just what we need to keep our business operations running smoothly. They are a pleasure to work with and we highly recommend their services.

- Dan Neal

TPS filled in the gaps within our small HR department

Working with Kim and her talented team helped us fill in the gaps within our small HR department. I strongly recommend TPS for HR tasks that don’t warrant hiring a full-time team. Thanks again Kim!

- Jake F

Knowledge and Expertise

Excellent customer service can be hard to find, but not with TPS Group! I know when I do business with Phil Coco, I can expect a quick response. I rely on his knowledge and expertise, and highly recommend TPS Group for their pension services.

- Mark Catullo

Dependable, experienced, and professional

Dependable, experienced, and professional

Dependable, experienced, and professional, our TPS Group recruiter was an invaluable resource, helping us locate and vet quality talent.

- Tyler R. Vunk

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