Planning for a secure financial future—whether that means saving for retirement or a child’s college education—is typically a high priority for employees. By reducing your tax liability, and helping retain valued employees, the right 401(k) benefits package can improve the financial health of your company.
At empowHR, we help businesses select, establish, and manage 401 (k) retirement accounts. empowHR is a full-service retirement plan provider offering centralized administration and simplified plan management for your company. We have the experience to handle your company’s plan paperwork, recordkeeping, and administration requirements.
Choosing a retirement plan can be intimidating. empowHR puts you in control of the process by guiding you through our specialized 401(k) retirement plan options. As you review our plans and their features, empowHR’s 401(k) advisors can help you to select the best possible retirement solution for your company, and its employees.
empowHR offers several 401(k) plan types. A traditional 401(k) plan encourages employees to save for retirement through pretax and Roth 401(k) contributions. With pretax contributions, taxes are deferred until your employees draw from their accounts. Roth 401(k) contributions are made post-tax, and can be withdrawn tax-free under certain conditions.
For our larger clients, empowHR provides broader investment choices and the flexibility to select funds that best fit your needs. You can customize your company’s investments through an open architecture fund platform or choose a pre-defined fund package. Either way, our investment options allow you to work with an advisor or manage the plan yourself.
Benefits for Employees:
■ 401(k) Contributions – Our 401(k) feature allows participants to contribute pre-tax funds to their traditional or Safe Harbor 401(k) plan. With certain restrictions, this provides tax-free distribution of earnings after retirement.
■ Catch-Up Contributions – Under federal law, plan participants over the age of 50 can contribute an additional $5,500 beyond the normal limits for a traditional or Safe Harbor 401(k), or $2,500 for a SIMPLE IRA.
■ Participant Loans – This feature allows participants to borrow from their plan balance prior to retirement. Loan payments are made through payroll on a per-pay-period basis and include both principal and interest.
■ Financial Services Dashboard – Allows participants to view and change information, download transaction history, and see rates of return for the entire account or for individual funds in real-time via empowHR’s Financial Services Dashboard.
Benefits for Employers:
■ Automatic Enrollment – Help employees start saving for their retirement automatically without the administrative hassle of traditional 401(k) enrollment. Once enrolled, participants maintain complete control of their own accounts and can opt-out (online or by phone) at any time.
■ Vesting – When you choose a vesting schedule, you determine the percentage of the employer contribution that an employee takes with them. Employees may be 100% vested immediately, or you can choose to start at 0% and increase the percentage based on how long the employee has worked for your company.
■ Employer Matching Options – Employer matching encourages plan participation by allowing your company to contribute to employees’ retirement accounts. The amount matched is usually expressed as a percentage of employees’ own contributions.
■ Testing, Reports, and Valuation – Each quarter, empowHR performs nondiscrimination testing and provides you with vital management reports and participant statements. We also perform daily valuations on all account balances.
■ Payroll Integration – empowHR is one of the few providers able to integrate your company’s payroll with 401(k) data via empowhHR’s 1Administrator platform. This greatly simplifies plan administration while helping ensure the accuracy of participants’ information.
■ Financial Services Dashboard – View a summary of plan investments and elections, individual participant information, and on-demand reports including nondiscrimination testing status. The site also allows you to update the employee census and view transaction histories for the plan and its participants.