Workplace Retirement Plan Services
You’ve heard of a 401(k) before, you may even have one, but do you really know what it is? A 401(k) is a retirement savings plan sponsored by employers where you can contribute a portion of your paycheck to an individual account that can be withdrawn upon retirement. Some employers can also contribute funds to their employees accounts. Having one or more workplace retirement plans like a 401(k) or 403(b) can help you prepare for your future retirement.
Tax Benefits of Having a 401(k)
401(k) contributions are usually tax-deferred, which means the amount in your account is not taxed until the money is withdrawn in retirement. Any interest, dividends and capital gains will also not be taxed until retirement withdrawal. But some 401(k)s contributions are taxed during the time the money is contributed—this is known as Roth elective deferrals—so the funds will not be taxed upon retirement withdrawal. At Lakeridge Wealth Management, we can help you manage your current and future 401(k)s.
Operating a 401(k) Plan
If you own a business or company, you might have established or are thinking about establishing a 401(k) plan for your employees. There are a lot of decisions to be made when it comes to managing a 401(k) plan, and as financial professionals, Lakeridge Wealth Management is here to help you make the best decisions for your business and your employees.
401(k) and 403(b) Contribution Limits
So you have one or more 401(k) or 403(b) plans, now what? There are limits to the amount you and your employer can contribute to these plans. Contributions limits can change yearly and may be tedious to keep track. At Lakeridge Wealth Management, it’s part of our job to keep up with changing financial regulations. Leave the work to us!