The Benefits of a Retirement Plan | The Online 401(k)

Your Future Begins Today

Retirement. It can be hard to imagine. Especially when it’s still many, many years away.

But here’s a little secret for you: The key to reaping the greatest benefit from your retirement plan is to start as early as possible. Even investing small amounts over time can add up quickly, thanks to capital gains and compound interest.

…When is the best time to prepare for retirement? No matter what age you are, the answer is always: Today.

So, when is the best time to prepare for retirement? No matter what age you are, the answer is always: Today. Not tomorrow. Not ten years from now. And certainly not when retirement age is right around the corner.

If you’re new to retirement planning, fear not. It’s not as complicated as you think. We’ve covered the basics for you here, but if at anytime you prefer to discuss your options with a human being, just say the word.

Not too familiar with retirement plans?

No problem – we’ve got a map.

Find the right retirement plan for you

Traditionally, a retirement plan has been a benefit reserved almost exclusively for large businesses and their employees. As a result, without a work-sponsored retirement plan available, many American workers have come up short of what they need to retire. 40 million Americans workers, to be exact.

The good news is there are more options than ever to help you take charge of your future, whether you need a retirement plan for your small business and your employees, or just yourself.

What’s even better is you can have more than one type of plan to help you build a strong portfolio. Want a 401(k)? How about an IRA, too? Simply pick and choose from a buffet of retirement plan options to get just the right solution for you.

Ready to dive into some details? Let’s do this!

 


Get to Know Your Options

Retirement Plan Options for Your Small Business

Let’s Talk Benefits

So what will you get from your plan?





The 401(k)

The most savings potential for your business.

A 401(k) plan is meant for businesses of all sizes. If you’re flying solo or have up to 100 employees, a 401(k) from The Online 401(k) could be the retirement plan option for you.

A 401(k) allows you and your employees to save for retirement by putting away money on a pre-tax basis, lowering your taxable income. What’s that mean to you? It means you’ll get less of a tax bite on your annual salary in the short term, while your long-term investments grow tax-free until you’re ready to retire.

So, how much can you contribute to a 401(k)? Take a look at your potential tax-deferred savings:

 


401(k) contribution limits

x 17,500
x 34,500
$52,000

Max amount you can put away in 2014

(Plus 5,500 more if age 50 or older)

Max amount employer can contribute 2014

(Employer contributions are optional)

Total of $52,000 in 2014 = Big Bucks!

(Or up to 57,500 if age 50 or older)


The Payroll
Deduction IRA

The simplest solution for your business.

A Payroll Deduction IRA (Individual Retirement Account) is funded by after-tax contributions deducted directly from your payroll. There is an option to contribute to either a Traditional IRA or a Roth IRA.

How do you know which type of IRA is best for you? Check out this infographic to learn more about the differences between a Traditional IRA and a Roth IRA:

Traditional
Roth

Traditional vs Roth



Benefits For
Your Business

Putting a retirement plan in place through your small business could be one of the smartest long-term investments you make.

Not only will you have happier employees by offering them this benefit, but you’ll also get the opportunity to save some cash – for your business and your own nest egg.

Don’t you just love it when everybody wins?

Check out some of these key benefits your business will enjoy with the right retirement plan:

Make your employees happy

A retirement plan is one of the most popular benefit options among American workers, second only to health care. Offering this benefit could help you attract and retain key talent, providing you with a stronger workforce for your business.

Get paid by Uncle Sam

If this is your company’s first retirement plan, your small business may qualify for a small business tax credit of up to $500 per year for the first three years of the plan. This could cut the cost of your plan by up to half.1

No-hassle retirement solution

You could have a web-based retirement plan up and running for your business within days, not weeks. And with an online solution, very little ongoing maintenance is needed, so it doesn’t have to take you away from your other responsibilities.

In fact, in the case of a payroll deduction IRA, there isn’t even any IRS compliance testing required. The plan practically runs itself. How’s that for simple?

Save through tax deductions

An employer match or profit-sharing contribution is not mandatory, but if you choose to include this with your 401(k) plan, your employer contributions are tax- deductible.2

1. Credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. Read more about this credit on the IRS Web site. Please consult a tax professional if you are interested in taking advantage of this credit.

2. Only applicable to 401(k) plans.



Benefits for
the Individual

Lower taxable income and greater financial security in the long run, all at a low cost to you. It really is that easy.

Want to know more about some of the benefits you could personally enjoy from your retirement plan? We’ve laid them out for you here.

Your future self will thank you

While there are immediate benefits to be had with a retirement plan, the biggest payoff will come later on when you’re ready to start withdrawing the money at retirement age.

You can give your future self the gift of financial security by taking just a few easy steps today. For minimal cost and effort, your Golden Years will have a greater chance of living up to their name.

Pay more to yourself and less to Uncle Sam

Retirement planning is not just about the long-term gains. No matter what type of retirement plan you have, there may be significant tax benefits available to you, both now and later.

How’s this work? The earnings on the money you put away in a traditional 401(k) or IRA will be tax-deferred, meaning you’ll pay no taxes on that money until you start withdrawing it from the account at retirement age. Plus, you’ll lower your taxable income, which amounts to less of a tax bite every year.

And in the case of a Roth plan, you won’t pay taxes at all on your earnings on investments. Not now, not ever.

Simple way to invest in your future

You can have a retirement plan that’s managed almost entirely online – no fuss, no headaches, and no stacks of paperwork to fill out.

In fact, with a work-sponsored plan, contributions are deducted directly from your payroll, giving you an automatic savings program. That means you can save for retirement without even having to think about it!

Get paid to save (wait – really?)

The government offers a tax credit up to $1,000 (or $2,000, if filing jointly) for low- to moderate-income workers who contribute to a qualified employer- sponsored retirement plan. You can read more about this on the IRS Web site.




The 401(k)

The most savings potential for your business.

A 401(k) plan is meant for businesses of all sizes. So, whether you’re flying solo or have up to 100 employees, this could be the plan for you.

A 401(k) allows you and your employees to save for retirement by putting away money on a pre-tax basis, lowering your taxable income. What’s that mean to you? It means you’ll get less of a tax bite on your annual salary in the short term, while your long-term investments grow tax-free until you’re ready to retire.

Take a look at your potential tax-deferred savings:

 


x 17,500
x 34,500
$52,000

Max amount you can put away in 2014

(Plus 5,500 more if age 50 or older)

Max amount employer can contribute 2014

(Employer Contributions are Optional)

Total of $52,000 in 2014 = Big Bucks!

(Or up to 57,500 if age 50 or older)


The Payroll
Deduction IRA

The simplest solution for your business.

A Payroll Deduction IRA (Individual Retirement Account) is funded by after-tax contributions deducted directly from your payroll. There is an option to contribute to either a Traditional IRA or a Roth IRA.

How do you know which type of IRA is best for you? Check out this infographic to learn more about the difference between a Traditional IRA and a Roth IRA.

Traditional
Roth


We all need a plan for the future. What’s yours?

Ready to take the next step towards getting a retirement plan for yourself and/or your small business?

We’ve got live retirement experts available anytime you’re ready to chat, via e-mail or phone. We’re here for you, and we speak your language: Human.

I want to talk with a retirement expert. Show me the way.

Get a retirement plan today

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Hello!

We understand you’re interested in a retirement plan. It can be an overwhelming process, so we’re here to help you narrow down your options and get you pointed in the right direction.

Now, let’s get started.

Do you have employees who work more than 20 hours a week?

YepNope

You could be a perfect fit for: Single(k)

Our Single(k) plan is designed specifically for the owner-only business with no or only part-time employees.

Learn More

How many employees do you have?

50 or fewerMore than 50

Our retirement plans are designed specifically for the small and growing business with 0 – 50 employees.

If this isn’t you, our plans may not be a good fit for your business.
To discuss with a specialist, feel free to contact us at sales@theonline401k.com or 855.401.7253.

Tell us what you would most like from your retirement plan.

Low cost and simplicityFlexibility and maximum options

How important is it to you to have the ability to contribute post-tax dollars or maximize the amount owners can contribute?

Very importantUhh…not sureNot at all important

We think you’ll like: Custom(k)

Our Custom(k) plan offers the greatest value with the most flexibility of options—including the ability to contribute post-tax dollars and maximize the amount owners can contribute. You and your employees will also have more flexible investment options and a self-directed brokerage account.

Learn More

How important is it to you to have multiple investment options available?

VeryNot so much

We think you’ll like: Express(k)

Express(k) is our most affordable 401(k) plan for businesses with 1-50 employees. It offers pre-set plan provisions with fewer options for customization. This is generally a good fit for the less savvy investor who just wants to get a solid 401(k) in place.

Learn More

We think you’ll like: Express(k)

Express(k) is our most affordable 401(k) plan for businesses with 1-50 employees. It offers pre-set plan provisions with fewer options for customization. This is generally a good fit for the less savvy investor who just wants to get a solid 401(k) in place.

Learn More