| Defined
Contribution Plans
Your retirement years will
be more rewarding if you plan well and save successfully
whether you participate in a 401(k), Profit Sharing,
Money Purchase, or other type of group retirement
plan.
401(k)
A 401(k) plan is an employer-sponsored group retirement
plan that permits employees to contribute a portion
of their salary on a tax-deferred basis. Plan
Sponsors may allow for discretionary employer
matching and/or profit sharing contributions.
Contributions go into an individual account within
the plan for each employee. Contributions (plus
any earnings) are not taxed by the Federal government
or by most state and local governments until distributed.
A 10% federal tax penalty may apply to amounts
distributed from your plan. Most plans allow participants
to direct their contributions into the investments
of their choice within the plan.
Roth Contribution Option
401(k) plans may also offer the Roth Contribution
option. A Roth option changed how the proceeds
are taxed. With a traditional 401(k) the proceeds
and the interest is tax deferred, meaning that
when you retire you will have to pay taxes on
all of your withdrawals. A Roth 401 (k) is taxed
normally as income when you put it into the account,
but the proceeds and interest are not taxed when
withdrawn.
Profit Sharing
A profit sharing plan is an employer-sponsored
group retirement plan in which the employer contributes
to the plan on behalf of employees on a discretionary
basis. Contributions go into an individual account
for each employee within the plan. Employees may
be able to direct the employer contributions into
the investments of their choice within the plan.
Money Purchase
A money purchase plan is an employer-sponsored
group retirement plan in which the employer contributes
fixed amounts to the plan on behalf of eligible
employees. The contributions go into an individual
account within the plan for each employee. Employees
may be able to direct the employer contributions
into the investments of their choice within the
plan.
Reasons
to Consider American Business Insurance
- Timely statement (including
a newsletter) sent directly to participants
each quarter
- 24-hour automated telephone
access – with voice recognition –
to help participants manage their retirement
plan account
- A diverse investment
line-up
- Easy-to-understand
educational materials
- Participants in retirement
programs serviced by The Hartford have several
inquiries/transactions available to them via
the password-protected portion of HartfordOnline.
To get more information please click below.
Click
Here for a Quote
Check
out these other valuable commercial coverages
that we offer!
|
