401(k) Retirement Plan
The 401(k) plan is a retirement savings and investment plan designed to allow eligible employees to supplement retirement income by saving and investing before-tax dollars through voluntary payroll contributions. This allows you to defer a portion of your wages, tax-free, for an easy start to planning for your future.
You’ll be eligible for enrollment in our 401(k) plan after you’ve been with Assignment America for 90 consecutive days following your assignment start date.
What is a 401(k)?
Named after the Internal Revenue Code section in which it appears, the 401(k) allows employees of qualified companies to set aside tax-deferred retirement funds. You determine the amount of your contributions, which are deducted before your paycheck is taxed; taxes are not payable until you withdraw funds from the plan.
RETIREMENT PLAN 2 Types of Available Retirement Plans As a Human Resources manager of a newly formed organization, I would first consider the two types of retirement plans, which I could make available to the employees; as well as how each plan works. The first plan to consider is the Defined benefit plan, where the amount of benefits to be paid at the time of the retirement are calculated using the formulas. It is usually paid each month. The second plan is the defined contribution plan, where the amount of future benefits available to the employee are based upon the amounts contributed to the plan by the employee and the employer. It is also based on the interest that is earned over time. The “Defined Contribution plans” include the plans like the “Profit Sharing,” “Employee Stock Ownership plans(ESOPs),” “Savings Incentive Match plans for the Employees(SIMPLE),” “Simplified Employee Pension plans (SEPs),” and the series “401(k)s, 403(b)s and 457s.” Communication Methods and Frequency In order to ensure that the plan is successful, employee participation is very important, and clear communication is key. A qualified expert consultant should be hired to design the plan, and then explain the benefits of the plan to the employees in groups. The employee’s need to be