Plans

Traditional 401(k) Plan

Easy, Affordable 401(k) helps employers Maximize their Benefits

By establishing a 401(k) with AXA, employers will have the flexibility to contribute pre-tax dollars with or without matching contributions for their employees — as long as they have employees who participate. Employers also get a program that is easy and low-cost to establish and maintain. A 401(k) can also be a great tool for rewarding employees and increasing retention.

Contribution Flexibility makes the 401(k) a Popular Choice

What makes 401(k) plans such a popular choice is the many sources where contributions can be made from, including:

  • Pre-tax salary deferrals
  • Discretionary employer matching
  • Profit sharing contributions
  • Eligible rollovers from employees previous retirement plans

Employers can encourage employees to participate by matching their contributions. Employers may reward them with profit sharing contributions based on a percentage of their salary — during years that they desire to make this contribution. In some cases, when a 401(k) plan is considered top heavy, eligible employees must receive minimum, unvested contributions.

Participating employees may contribute up to $18,000 each year to their 401(k), higher for employees (and employers) over the age of 50. See contribution limits here.

Highlights

  • Contribution Flexibility.
  • Increased Contribution Limits
  • Visible and Valuable Employee Benefit.
  • Employees Manage Own Investments.
  • Greater administrative requirements than a SIMPLE or Safe Harbor 401(k).

Investment Management remains with the Employee

The ADA Members Retirement Program provides all the tools and services that employees need to manage their own investments. They have toll-free access to dedicated Retirement Plan Account Managers who are fully knowledgeable about every aspect of the program. Plus, plan participants have a full range of investment options to help them meet their goals.

Employer should consult with one of our Retirement Program Specialists to help determine if a Traditional 401(k) plan is right for their situation. And, if they wish, we can also arrange for them to receive a customized retirement plan proposal from an Members Retirement Program Specialist at no cost or obligation to them.

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