401(k) plans can be a powerful tool in promoting financial security in retirement.

They are a valuable option for businesses considering a retirement plan, providing benefits to employees and their employers. Employers start a 401(k) for a host of reasons. A well-designed 401(k) plan can help attract and keep talented employees. It allows participants to decide how much to contribute to their accounts on a before-tax basis. Employers are entitled to a tax deduction for their contributions to employees' accounts. A 401(k) plan benefits a mix of rank-and-file employees and owner/managers. The money contributed may grow through investments in stocks, mutual funds, money market funds, savings accounts, and other investment vehicles. Contributions and earnings generally are not taxed by the Federal government or by most State governments until they are distributed. A 401(k) plan may allow participants to take their benefits with them when they leave the company, easing administrative burdens. Beginning in 2006, 401(k) plans may be established or amended to permit employees to designate some or all of their contributions (employee deferrals) as Roth contributions. These contributions are made on an after-tax basis, but distributions (including earnings) are tax-free (if certain conditions are met). This booklet highlights some of a 401(k) plan's advantages, some of your options and responsibilities as an employer operating a 401(k), and the differences among the types of 401(k) plans.

Retirement for Small Business Owners: Saving for Retirement

Are you a small business owner? If so, are you ready for retirement? Whether you are thirty or fifty years old, retirement should be on your mind. Small business owners are 100% in charge of their retirement. If you don't start acting now, you may find it dificult to stop working and retire in a timely matter.

Five Pillars of a Retirement Plan

As a decision-maker, you should know the importance of a solid retirement plan for you and your employees. As the American workforce ages, many employees are looking toward retirement with great concern. In fact, studies show that from 2010 to 2020 the demographic for ages 65 to 74 will be the fastest growing segment of the population with age group 55-64 as the largest segment of the population.

In light of recent pension plan events and the aging of the American population, Congress has become more focused on the integrity of retirement plan administration, plan design and investment monitoring.

In this environment, it is more important than ever to ensure that your company has a solid, compliant retirement plan.