401(K) Retirement Plans
Section 401(k) plans are rapidly becoming the employer-sponsored retirement plan of choice. Your bank will obtain a greater return from the money it invests in a 401(k) plan than from the same investment in a different type of retirement plan. Why? Because 401(k) plans are easy to communicate to employees and enable employees to participate in the decisions that affect their benefits under the plan. Your employees benefit in two ways:
- They pay less
in taxes for the current period,
- Their savings
grow tax-free until withdrawn, and
- The employees’ accounts may grow even more if a company match and/or profit sharing contribution is made.
Banks now also have the option of offering a Roth 401(k) feature for employees who wish to contribute “after-tax” dollars to the Plan. Roth 401(k) contributions and their earnings grow tax free and are not taxed upon withdrawal, provided certain guidelines have been met. Many of your employees will be enthusiastic about the ability to plan and participate in their own retirement saving.
If you are a current participant of the GBA Plan, please log on to ABG's participant site to view your account.
Questions? Email the Webmaster.
Retirement Trust Staff