401K Plan
401K plans continue to be the fastest retirement plan available to United States workers. An Employee Benefits Survey conducted in 1995 by the United States Chamber of Commerce Research Center revealed that 78 percent of employers surveyed offered 401K- like plans in 1995. This is up from the 70 percent of employers surveyed in 1987. One of the reasons 401K plans have become so popular is that they provided significant benefits for both employers and employees. From the employer's perspective, 401K plans are less costly to fund than other types of retirement plans with similar benefits. Dollars contributed to the 401K plan by the employees, in addition to the contributions made by the employer, are all deductible by the employer. In addition to the tax benefits available to the employer, the employer will generally recognize non-tax benefits such as improved employee morale and increased employee retention rates. For more information please contact jlkfountain@aol.com
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