401(k) Individual Retirement Plan


A 401(k) plan is a salary reduction plan that is offered by employers. It offers tax deferred benefits towards your retirement investments. You contribute a percentage of your pretax income each pay period to your 401(k) and choose specific investments from among those that are offered by the plan. Any earnings you receive from the 401(k) plan are accumulated tax deferred.


The maximum annual employee contribution is $18,000, plus an additional $6,000 catch-up provision for employees over the age of 50. Typically these plans tend to have more reporting requirements and administrative operating costs.


Contributions to a Roth 401(k) plan are made with after-tax dollars. Distributions taken after the investor reaches age 59 ½ are tax-free.


Contact Us:


To find out more about opening a 401(k) Individual Retirement Plan, either call our office at (855) 846-ACAP, fill out our brief contact form or email us at [email protected].