Is It Right For You?
You're a start-up, an established business, or something in between, seeking a retirement plan for you and your employees that allows for a high level of employee salary deferrals. You also want a plan that's customized specifically for your business, and are willing to take on more administration and a higher cost to get it.
The Tax Benefits of a 401(k)
Contributions are tax-deductible and earnings grow tax-deferred.
Additional Advantages
- A 401(k) built for your business. However big or small your business, there's a 401(k) solution that fits. We administer start-up to mid-sized plans in concert with Charles Schwab custodial services; larger plans handled by Schwab Retirement Plan Services.
- Your employees will appreciate the tax break. For tax year 2009, your employees may contribute up to $16,500 from their pre-tax salaries, thus lowering their taxable income; those age 50 or over may contribute an additional $5,500.
- Flexible funding requirements. As the employer, you have the option to match your employees' contributions should you choose. Employer and employee contributions combined may not exceed $49,000 for tax year 2009 ($54,500 for age 50 or over).
Your Next Step
Contact a Key Investment Team advisor to help determine if a 401(k) is right for you. We'll help you create a 401(k) solution that works with your business needs.
Key Investment Team does not provide tax advice. The structuring of a retirement plan can have significant tax consequences on you and your business. Investors should consult with their tax professional to determine the tax implications of this retirement plan structure.