Traditional 401(k)

A 401(k) is a qualified plan established by employers to which eligible employees may make salary reduction contributions on either a post-tax or pre-tax basis.  A Traditional 401(k) offers maximum flexibility giving employers discretion of whether to make contributions  for all participants, to match employee’s deferrals, both or neither.  These contributions can be subject to a vesting scheduled and offers annual testing to ensure that benefits for general employees are proportional to benefits of owners/managers.

IRS regulations  (as well as those established by the plan itself) limit the percentage of salary deferral contributions  as well as how and when employees can withdraw assets.  Hillspring Financial, Inc. works directly with employers to shop 401(k) plans and establish plan guidelines to benefit the participants  at the lowest cost and greatest flexibility to the employer.