If you're looking for investment or retirement information, IntentGen has you covered. We offer lots of resources and articles that provide detailed information, so you have the knowledge needed to make the right financial decision. Feel free to reach out to us for more information. Continue reading to learn more about the employer-sponsored retirement plan.
What is an Employer-Sponsored Retirement Plan?
The employer-sponsored retirement plan is a benefit plan companies offer at an affordable price. These plans include HSA and 401(k) and cover a variety of services like healthcare and retirement savings. Keep in mind that the employer is not contributing funds to the plans, but they may match certain contributions. When enrolled in these programs, you'll enjoy benefits like discounted services and tax breaks.
Additional Information to Know About
There are employer-sponsored retirement plans like 401(k) and Roth 401(k) that offer employees a way to save for their retirement while also enjoying tax breaks in the process. Those who participate in these plans get free money because their employers are offering matching contributions. This is an excellent way to save on healthcare services for you and your family.
Employer-Sponsored Retirement Plan Tax Advantages
401(k) contributions are done using "pre-tax" dollars, which means that the money goes directly from your paycheck into the plan before tax deductions. Because of this, less of your income gets taxed.
With the Roth 4-1(k), the money is contributed on an "after-tax" basis, which means the cash goes from your check into the plan after tax deductions. A bonus to this, any withdrawals in the future are tax-free.
Additional employer-sponsored retirement plans with healthcare include the Health Savings Account (HSA). The HSA is a savings account for qualified medical expenses. These contributions are "pre-tax," interest grows tax-free, and any withdrawals made to cover qualified medical expenses are also tax-free. Unlike a Flexible Spending Account (FSA), the money that's in your HSA rolls over from year to year.
Find Out More About Employer-Sponsored Retirement Plans!
Want more details about your retirement options or if having an HSA is worth joining? We can help! We offer useful articles and resources to guide you along the way, so you can make the financial decisions that are right for you and your family. Feel free to contact us if you have any questions.