A 401K plan or Individual 401K plan is Qualified plan where employees or the self-employed, can choose to contribute a portion of their cash wages on a tax-deferred basis. This plan is good for companies that have established cash flow. It also offers employees the largest number of options. The wages that are deferred are not subject to income tax and they are not included as taxable wages. They are included as wages subject to Social Security, Medicare and Federal unemployment taxes.

A qualified plan can include cash or deferred arrangement only if it is a Profit-Sharing Plan or a Money Purchase Plan, in existence on June 27, 1974. Contact our Customer Service Department to discuss eligibility requirements as well as other qualified retirement plans.

Eligibility
Contribution
Distribution