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Section 401(k) of the Internal Revenue Code is one of the most advantageous tax sheltering devices ever established by Congress. It encourages Employers and their Employees to save money for retirement through tax deferred payroll deductions. 401(k) plans are the most popular type of retirement program in the United States. While similar to an Individual Retirement Account (IRA), a 40l(k) differs in that greater contributions can be made, loans can be taken under certain restricted circumstances and employers can choose to match a portion of the monies their employees contribute, increasing the leverage of each dollar of employee contribution. Pacific Pension & Benefit Services, Inc. provides Employers with many 401(k) options structured within a Low-Cost Comprehensive Program PPBS works with several 401(k) program sponsors designed to provide you with the opportunity to offer a platform of the highest quality to your employees at the most competitive cost & with the least administrative burden on the Employer. In order to successfully sponsor a 401(k) plan, together we will need to:
Design the Type of Plan You Want
Develop an Attractive Investment Package
Prepare Enrollment Materials
Ensure that Accounting/Payroll Systems are in Place
Assist You in the Ongoing Administration & Recordkeeping
Your PPBS consultant will help you design the 401(k) plan that meets your needs best. This design takes into account your objectives in sponsoring the plan, general employee demographics and other employee benefit programs that you sponsor.
Your consultant reviews plan specifications with you. After the plan design is complete, a Plan and Trust Agreement and Summary Plan Description are produced. These documents are then submitted to the IRS, which will provide a determination letter as to the qualified status of the plan.
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