Archive | 401(k) RSS for this section

Saving for the New Year with a 401(k)

saving moneyEvery New Year millions of Americans resolve to save money. Every April millions of Americans file their taxes and look for ways to keep more money in their pockets. One way to accomplish both these feats is through a 401k plan. As published on 401k.com:

Investing money through your 401(k) plan gives you the benefit of tax-deferred saving. This lets you increase your take home pay and decrease your current taxable income. Remember though, your pre-tax contributions are not tax-free; they’re tax-deferred, which means that you don’t pay income tax on this money until you withdraw it from the plan (which should be at retirement, when you may be in a lower tax bracket). Take a look at a hypothetical chart to see how contributing to the plan compares with saving outside the plan (in an ordinary savings, or other taxable account).

Pre-tax savings in the plan

Saving in a taxable account outside of the plan

Annual gross salary

$50,000

$50,000

6 percent of pay before-tax contribution

-3,000

Taxable pay

47,000

50,000

Less a hypothetical 27 percent Federal income tax

-12,690

-13,500

6 percent regular annual savings in a taxable account outside the plan (from gross salary)

-3,000

Take home pay

$34,310

$33,500

Annual difference in take home pay

$810

*This hypothetical example is for illustrative purposes only. Taxes on pretax plan contributions as well as any earnings will be due at the tax rates in effect at the time you withdraw from your plan account.

HR Strategies HR Consulting

What:

As an employer you rely on your employees to get the job done, and to get it done well in an efficient and profitable manner. Just as you rely on them, they rely on you to manage them well, and to meet their needs. The relationship between employer and employee is a complex one, with both needing things from the other. On top of that an employer must make sure that they are meeting government guidelines on employment practices. These are just a few of the many complex issues that are a part of Human Resources. When your human resource needs are handled accurately and professionally you are able to once again focus on profitability. HR Strategies is here to help you do just that with our Human Resource Administration Solutions.

How:

Employment doesn’t just mean the hiring, paying, and perhaps the eventual termination of an employee. Employment means everything in the life cycle of an employee with your company. HR Strategies human resources department is here to assist with all of the complications and paperwork that go along with that lifecycle. We are here to aide you in writing help wanted ads and job descriptions; drug screening and verifications; new hire candidate assessment tools; new hire paperwork, including I-9 compliance; customized employee handbooks; employee policies and procedures; Federal and State required postings; human resource, supervisor, and compliance training; EEOC claims; Employment Practices Liability Insurance; Employee Assistance Program; compliance with IRS, INS, ADA, EEOC, FMLA, FLSA, DOT, COBRA, Title VII, etc.; discipline and termination counseling; investigation of employee/employer and employment complaints; and can help review and audit exiting procedures; just to name a few of our services involving human resources. We act as your partner in the human resource of your business.

Benefit:

By taking the burden of human resources administration off of you, we free your time from paperwork and allow you the time to focus on growing your company. When it comes to human resources we understand that the first word is “human”, thus individual. Just as each of our clients is unique in their industries, and business practices, we understand that your workforce is as well. We are here to help you provide for those individuals employment needs, while at the same time protecting your individual employer needs. With HR Strategies your needs are met, and you are free to grow your company to its full potential.

See all HR Solutions Here

Saving Money with a 401(k) Plan

Every New Year millions of Americans resolve to save money. Every April millions of Americans file their taxes and look for ways to keep more money in their pockets. One way to accomplish both these feats is through a 401k plan. As published on 401k.com:

Investing money through your 401(k) plan gives you the benefit of tax-deferred saving. This lets you increase your take home pay and decrease your current taxable income. Remember though, your pre-tax contributions are not tax-free; they’re tax-deferred, which means that you don’t pay income tax on this money until you withdraw it from the plan (which should be at retirement, when you may be in a lower tax bracket). Take a look at a hypothetical chart to see how contributing to the plan compares with saving outside the plan (in an ordinary savings, or other taxable account).

Pre-tax savings in the plan

Saving in a taxable account outside of the plan

Annual gross salary

$50,000

$50,000

6 percent of pay before-tax contribution

-3,000

0

Taxable pay

47,000

50,000

Less a hypothetical 27 percent Federal income tax

-12,690

-13,500

6 percent regular annual savings in a taxable account outside the plan (from gross salary)

0

-3,000

Take home pay

$34,310

$33,500

Annual difference in take home pay

$810

*This hypothetical example is for illustrative purposes only. Taxes on pretax plan contributions as well as any earnings will be due at the tax rates in effect at the time you withdraw from your plan account.

Attention Clients: Do you offer a 401(k) plan?

Is it time to offer a 401(k) plan with us?

As 2010 winds down, planning for 2011 will soon be underway. Our 401(k) plan through Transamerica is a great tool for employee attraction and retention. You will be offering your employees a high-quality 401(k) without having to assume responsibility or liability for the plan. Yet, you still have plan design options. For example, you may select no employer match, an employer match of your choosing, or a safe harbor match. 

The benefits of participating in our 401(k) plan with Transamerica include:

  • No administrative work for you
  • Relief of the fiduciary responsibilities
  • No cost for plan set up, discrimination testing, or government spending

Click the picture below to check out the video from Transamerica:

Call us today to set up a 401(k) plan to match your company’s needs!

%d bloggers like this: