Bridge Benefits Group advises in the design and administration of retirement plans for companies and non-profits. We help design 401k plans that fit the needs of businesses and their owners. As an investment fiduciary on all our plans, businesses can be assured that risks are being addressed and a strategy is in place that seeks to ensure your plan will always be in compliance with the Department of Labor.
The tax benefit is that one does not pay taxes on salary deferrals and the account grows tax-deferred until a withdrawal is made (note: generally, the withdrawal must be made after age 59½ to not incur a tax penalty). Simply put, 401k plans are a type of defined contribution plan that allow employers and employees to contribute to an account with tax benefits for retirement purposes
Our approach is one that assists with custom design strategies that seek to ensure the business has the right plan and not overpaying. We work hand in hand with business owners to work towards achieving their goals. Our in-house service team takes care of all the participants within a plan, which means participants have a clear outlet to relay questions or concerns relating to the plan.
Contributions to traditional 401k plans may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 1⁄2 may result in a 10% IRS penalty tax in addition to current income tax.