Planning retirement savings is very important. There are some options that you can choose for preparing that. One of the program which is offered by Fidelity for your retirement is 401K. This is a retirement savings plan which is sponsored by an employer. This program permits employees to save and invest a piece of their earning before taxes are taken out. Taxes will not paid until the money is withdrawn from the account. By this program, you are able to control how your money is invested. Most plans offers a lot of mutual funds composed of bonds, stocks, and money market investments. The most famous selection tends to be funds which are target-date, a combination of bonds and stocks which gradually to be more conservative when you reach retirement.
Fidelity 401K plans aimed for small business through Fidelity Workplace Services are able to give you a help to offer competitive benefits to your employees. If you offer a plan or retirement to your employees, it can help level the professional playing field between your small business and bigger companies. A good retirement plan must help you to:
- Enjoy tax advantages which is available to you as an employer offering the plan
- Retain employees who are valuable and want retirement choices in their benefits package
- Attract talented people in today’s challenging job market
This program can be appropriate for private and public companies which has more than 20 employees. The employees will take the tax benefits which is tax-deferred growth potential and pre-tax contributions and the employers will take the benefits which is tax-deductible contributions. The key advantages of this program is:
- The plan design is flexible.
- There is online access to accounts via NetBenefits.
- There are wide range or mutual fund options.
- There are clearly communicated administrative fees and competitive average expense ratios.
The features which are available are employer matching contributions and participant loans. There are administrative responsibilities which consist of filing of IRS form 5500, special IRS testing to guarantee plan does not favor highly compensated employees, and a variety of employee notices regarding distributions an other events. For investment options, there are a wide variety of investments that you can choose which include Fidelity mutual funds. For support and guidance, you are able to access their resources, tools and experience to help simplify selecting, administering, and measuring your 401K plan. Besides, there are also communication and education programs to help drive retirement readiness. To get started with your plan or to learn more, you can call a retirement professional at 866-418-5173.
It is better to start making a retirement plan early, so that the potential to help reach your goals will be bigger. In addition, learning about the tax-advantages accounts and strategies also will help you make the most contributions during your earning years. So, consider saving as soon as you can, try to contribute enough to meet employer match if any. You need to know that retirement is important, but you also have to remember that it does not neglect other goals.