National 401(k) Day is the perfect occasion to focus on the importance of retirement savings. Created in 1996 by the Plan Sponsor Council of America, this day is celebrated on the Friday after Labor Day. It encourages businesses and employees to understand the benefits of 401(k) retirement plans and why planning for the future is essential.
As Safe Harbor plan deadlines loom and employers look to plan their initiatives for the coming year, National 401(k) day is a great time to consider adding this highly sought-after employee benefit.
Why National 401(k) Day Matters
Retirement planning can seem complicated, especially when it comes to understanding how 401(k) works. In fact, less than 40% of Americans can answer basic questions about 401(k) plans. National 401(k) Day aims to change that by making retirement planning more accessible and easier to understand. Companies use this opportunity to educate employees on 401(k) contributions, tax advantages, and how to maximize retirement savings.
Understanding 401(k) Benefits
Whether you’re new to retirement planning or have had a 401(k) for years, it’s important to understand the difference between traditional and Roth 401(k) plans:
– Traditional 401(k): Contributions are made pre-tax, lowering your taxable income. You’ll pay taxes on withdrawals during retirement.
– Roth 401(k): Contributions are made with after-tax dollars, which means your money grows tax-free, and withdrawals during retirement aren’t taxed.
Knowing these 401(k) benefits can help employees choose the best option for their financial goals.
401(k) Solutions for Small Businesses
Small business owners often think that offering a 401(k) plan is too costly or complicated. In reality, SECURE Act 2.0 makes it more affordable than ever for a small business to offer a 401(k) plan.
Asure offers affordable and easy-to-manage 401(k) plans specifically designed for small businesses. With Asure, you get:
– Seamless Integration with Payroll: Automate 401(k) contributions and manage compliance without extra hassle.
– Fiduciary Support: Asure takes on administrative and legal responsibilities, ensuring your business remains compliant with tax laws.
– Cost-Effective Solutions: Thanks to tax credits, small businesses can implement 401(k) plans at little to no cost.
The Importance of Offering 401(k) Retirement Plans
For small business owners, offering a 401(k) retirement plan isn’t just a benefit—it’s a strategy for attracting and retaining top talent. Employees value businesses that invest in their financial future, and with Asure’s support, you can easily set up a plan that works for both you and your team.
This National 401(k) Day, take the time to learn more about how offering a 401(k) plan can boost your business. Explore Asure’s made-for-small-business 401K solutions Asure provides for small businesses.
Don’t miss this opportunity to invest in your employees and secure a brighter future.