Low cost 401k for General Contractors
A low cost 401k plan for General Contractors company regardless if you’re a small, mid, or large size business. As a business owner, you have the responsibility to provide what is best and beneficial for yourself and employees.
The two best low cost 401k plan there are:
Traditional 401K for General Contractors
- a company’s retirement plan provided to employees. Employers are responsible to make contributions to employees, but it also allows the workers to contribute. Individuals participating in the plan pay taxes at withdrawal.
Roth 401K for General Contractors
- is a combination of Roth IRA and the Traditional 401K. When arriving to retirement age, withdrawals become tax-free. Participants must pay taxes once they start withdrawing from the account.
Benefits for Employers Using a Low fee 401k for General Contractors
Utilizing a low cost 401k for general contractors are beneficial for both the employee and employer. Financial planners help design the most successful one for your business, in which the employee and employer can get all the benefits desired. General Contractor’s employers must be willing to be funding on a per-pay-period basis to the low cost 401k plan. An important thing is to understand the rules and regulations of this type of plans. A business or employer can avoid future endeavors or failures by being prepared.
For both employees and employers, paying contributions might seem tedious or unreasonable at the time. However, future benefits will outweigh present contributions.
Contribution Limits with a Low fee 401k for General Contractors
General Contractor’s employers can do a maximum contribution of $54,000 per year to an employee’s plan and deduct taxes from contributions. A low cost 401k plan is not tax deductible for an employee. This means the plan becomes tax-free with contributions given, but will be taxed until withdrawals are done. The maximum contribution an employee can make is $18,000 per year. Financial advisers recommend employers to set up a financial strategy three months before the end of the year.